Attorney for debt settlement?

[OutOfTheFryingPan]

My income will be increasing unexpectedly in the near future by about $200 a month. I was checking my options with debt settlement and ran into this. http://debtlegalservices.com/

Could someone who is smarter than me take a look and see if it looks better than the typical CCCS? It almost seems too good to be true which of course raises some red flags.

Thanks for your help!

Pan

[kb9tbq]

Don't know - I am not one to trust them.

Not all of them are the same, but there are a few possible things that can happen to you.

Some will get power of attorney from you - and will wait for you to pay so much in first before moving on fixing the creditors. You can't easily back out of these (fees / penalties may be involved) - they will redirect your billing statements to be sent to them.

Another thing - is that they TOTALLY distroy your credit because they will sit and wait (if you can imagine all of a sudden accounts that where at the start only 30 days late all going into charge off status), almost up to the point the creditor is ready to take you to court for a judgment.

Then they will step in, when they think the creditor is the most desperate to cut a deal on the amount owed.

They are about saving you the most money - not helping your credit. So if you want to get by the cheapest this is the way to go. If you don't care what you credit looks like in the end.

But if this is the case you would be better filing chapter 13 bankruptcy (with re-payment option).

Settlements look bad on the credit report - to other creditors (looks like you cheated the creditor out of what was due).

Just some food for thought.

[OutOfTheFryingPan]

Thank KB! I'm still studying the Chapter 13 options also. So much to learn! I really am not that worried about my credit rating right now. The BK just worries me as I've heard so many horror stories about the court selling off your personal items and whatnot. Does this not happen with a Ch. 13?

Thanks for your help,

pan

[kb9tbq]

I know some view bankrutpcy as bad, and would have done different if they had a second chance. Since it will follow you for 7 years on a chapter 13 filing.

This is where I think the difference comes into play between a chapter 13 & 7 bankruptcy. Know there are exemptions and that you are asked to itemize your property. But I am really not sure on the exacts.

My mother with health problems recently filed for bankruptcy 13 - then when things got worse for her health, it went to chapter 7 (10 years on credit reporting). Know that she still has all of her belongings and the house. But also may be between states there are different rules (Illinois here).

I do believe in certain circumstances a person, just has to walk away and start new. Really just depends on your outlook. If you have the financial means to climb back up out of it.

A lot of people will try to wait out the SOL on each debt and get out that way, or if forced to it settle prior to judgment. (some even after judgment - still never pay on debt) of course this is if the creditor don't get a wage garnishment to take the money owed.

There are just so many ways to go on these things.

[Ravenous Wolf]

All credit can be fixed...

There are lots of people on here who can testify for that.

However, your debt really depends on your situation.

Are you behind on many of your bills (like 30 days or more) with creditors calling?

Or do you just not have any more after paying your bills.

Losing your credit sucks. But having good credit is awesome. I had defaulted student loans, tax liens, charge offs, collections, etc. My credit sucked big green donkey [EXPLETIVE DELETED].

I fixed a lot of my debt problems because I decided to live like a groundhog for like 18 months.

If you are expecting an increase in your salary, you may very well be in a position to improve your debt situation and your credit.

And if you have a few dings in your credit right now, this boad can definitely help you straighten them out.

But to let your credit go down the tubes is a big decision because it takes a long time to get derogatory information removed (as you can see from the posts on this board).

If you have a few dings in your credit, you may want to consider the creative ideas this board has to offer.

Once your credit improves, you can obtain a low interest single digit signature loan that can consolidate your debt and improve your credit history while you are at it.

I now have several low and lower interest signature loans. I wiped out all the loan shark places (like 88 percent interest) and the finance companies (like 33 percent interest) and I am down to one last credit card (that one is 23 percent interest).

I now have years of good credit history that enabled me to wipe out bigger debt at reasonable interest rates.