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Debt settlement, step by step.

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Question: I was reading some blogs on debt settlement and stumbled on this one: http://iclosem.wordpress.com/2008/07/24/what-is-debt-settlement/

The author recommended a company called envision debt solutions (www.envisiondebtsolutions.com). Has anybody used this company before? Any reviews? I spoke with them and apparently they have attorneys that can do all the negotiations for you...

Coincidentally I was listening to the Howard Stern Show and one dude called in (KC Armstrong) and was talking about how he enrolled himself in with the same company so I'm pretty sure they're not a fly-by-night company. Let me get some input from y'all on this I don't want to do the negotiations by myself because I'm already behind a bit and my creditors aren't willing to budge....

-Alexander L

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envisiondebtsolutions is just another "debt fixer" that managed to get some national press.

Run away.

They are, at best, a collection agency that has decided to catch more flies honey (hey, we're on YOUR side) than with bullying. They have contracts with certain creditors...if your debts happen to be with those creditors, you may get a settlement (for a fee) and then you get to pay income taxes on the difference. If your debts are with someone else...you get sued.

They could be, at worst, an outright scam that will take your money and disappear. (Search on James Lombardo).

They will not help you.

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I don't have the acronyms down so I will keep this short. The website said not to call the creditors so I wrote them, made an offer and I have not heard a word. If they do not respond is that enough to have them removed from my credit report?

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I don't have the acronyms down so I will keep this short. The website said not to call the creditors so I wrote them, made an offer and I have not heard a word. If they do not respond is that enough to have them removed from my credit report?
No, not at all. Its not that easy. Assuming its the "original creditor" (OC) you wrote, they're under no obligation to accept less that the full amount, or even to delete their tradeline (TL) from your credit reports (CRs) if you offer to pay them in full.

If its a collection agency (CA) you wrote, remember that they cannot legally speak for the OC and any agreement you make with them may be a waste of time and money.

If the debt has been sold, and its a junk debt buyer (JDB) you wrote, again, they're under not obligation to accept your offer. And I, personally, would never willingly pay a JDB unless ordered to by a court.

And, lastly, if your letters were not sent "certified mail, return receipt requested" (CMRRR), you have no proof you even tried to settle these accounts.

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I am being harassed to repay a loan that I cosigned for in 2001. The SOL for a personal loan in VA is 5 years. How should I approach the CA? Do I need to validate the debt or wait for them to try and place a judgement? Do I need a lawyer? :confused:

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I am being harassed to repay a loan that I cosigned for in 2001. The SOL for a personal loan in VA is 5 years. How should I approach the CA? Do I need to validate the debt or wait for them to try and place a judgement? Do I need a lawyer? :confused:

Honestly - Before you take long and tedious legal route, have you ever consulted with Debt Settlement Programs? There are many. I would highly recommend it. The best part is that you don’t have to see anyone. You can do it all from the comfort and privacy of your home or office.

I was in bad credit while moving my resident from one state to the other and friend of mine advised me and I am and will be so thankful to her for life. One company – RemoveDebtOnline.com really got me out of mud. And I didnt pay a dime for their service. Really!!

I wish you a debt free life.

Good Luck,

Joe :)++

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I was deep in mud for some time. Collection Agencies were forcing me to live depressed low life. A friend of mine suggested to talk with Debt Settlement Programs and that really got me out. Check out RemoveDebtOnline.com

I really liked to get the things taken care of without seeing anyone. It all taken care of from privacy of my apartment. I was not forced to Bankruptsy, monthly payment got reduced by 55% and on that I paid no interest. And best part was, I didnt pay a dime for the whole process.

I wish everyone debt free life. To me, that is real freedom.

Regards,

Joe :)++

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Warning! All debt fixers are scams. Some screw you a little, most screw you a lot.

A brand new poster whose first two posts shill for a specific is suspect.

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im very confused and need your help......currently i have a judgement against me for 3300 dollars from a collection agency, i tried to dispute the debt and it was determind valid. i currently am willing to settle but have no idea how to since its a judgement. can anyone help me...... itzspider

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Hello everyone;

I am new to this Forum and I need some help from experience people in these topics; Credit and Debts.

I am receiving these dreadful phone calls from my creditors and it drove me batty. I finally picked up the phone and spoke to some of these creditors and they offered to reduced my IR and monthly payments. I still have a few to answer to and try and get the same offer.

However, I still find myself out of money by the end of each month. My question is; Eventhough I am current with some of these creditors (BOA, Citicards, Chase, Discoverer) can I make any deal with them for a settlement on the amount I owe?

Or, should I stick to the payment plans they offer and pay off the smaller balances first and move to the next one until who knows when I get to pay the rest off?

Thanks in advance.

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im very confused and need your help......currently i have a judgement against me for 3300 dollars from a collection agency, i tried to dispute the debt and it was determind valid. i currently am willing to settle but have no idea how to since its a judgement. can anyone help me...... itzspider

Have you tried to write a letter to the collection agency? Sometimes some are still willing to settle even if it's a judgment; they just want some $$$$.

Try to send them a letter; hope it works out.

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Hello everyone;

I am new to this Forum and I need some help from experience people in these topics; Credit and Debts.

I am receiving these dreadful phone calls from my creditors and it drove me batty. I finally picked up the phone and spoke to some of these creditors and they offered to reduced my IR and monthly payments. I still have a few to answer to and try and get the same offer.

However, I still find myself out of money by the end of each month. My question is; Eventhough I am current with some of these creditors (BOA, Citicards, Chase, Discoverer) can I make any deal with them for a settlement on the amount I owe?

Or, should I stick to the payment plans they offer and pay off the smaller

balances first and move to the next one until who knows when I get to pay the rest off?

Thanks in advance.

1. Stay in contact with the creditors. It's the best thing you can do.

2. If they are willing to work with you on the payment plans, go for it and don't default on any.

3. Usually the settlements happen after 90 days of defaults. You could try to call the creditor and see what they say about settling.

If you can make the hardship payments, I say continue to do them until the card is paid off so you can still be in good standings with the company. DO NOT LET THEM GO TO THE COLLECTION AGENCIES! :) Stay in contact with the creditor even if you cannot make the payment. Call them and let them know of your status; don't ignore them.

Try to find some items you can sell on Ebay or Craigslist.

Might want to look for a little part time job on the side as well.

Best of luck!

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I am settling debt with OC and have the following info

FNB Balance $ 2877, offer $500 accepted " Acct listed as " Settled" 1099-C

HSBC Balance: $5177 offer $ 1582 Accepted " Acct listed as "Settled" 1099-C

AMEX Balance: $ 15,100 offer $ 2690 Not Accepted

US Bank Balance $ 10,000 offered $ 2600 Not accepted

My question really is

If i take and settle all this accounts and find myself having 4 accounts with a " Settled" agreement at the same time with 1099-C of close to $ 48,000 for tax year 2009, that lot more than I can handle.

How would you approach this?. Do you take " SETTLED" ON EVERY CHARGE OFF ACCOUNT OR NOT?

How does it affect my credit down the road

Should I break it up into different years on getting settled and 1099-C to ease the tax burden for me

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Wow. I hadn't realized this before. Honestly, I've always been apprehensive about "Settling" due to shady settlement companies. This makes sense I suppose if one has a lot of insurmountable debt.

I don't think I'll so this in my situation though, because my debt is less than $10k, and because I don't feel it's ethical to pay somebody less than you owe, even if it's to a big corporate credit card company.

Thoughts on ethics?

Thanks for the healthy step-by-step advice!

Seth

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No, but it will make your score drop. Debt setttlement is a little bit better than filing bankruptcy and your credit will recover, but only with hard work on your part

Go to the website below and read it all This site is all about easy credit repair and doing it yourself and knowing when to hire help It dispells a lot of myths about how credit really works, including what happens when you go cash only and dont establish a credit rating

I got my credit score from 480 to 709 with the help I got from this site It is worth your time and get the RSS feed to since new information is constantly being added to it and you will be on top of it when it does add it.

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