Joined Settlement Co & Got Sued

[mermaid]

Hi, I am new here. Found this from a radio show on Blogtalk. I am glad I found it. I wanted to share with you my expeirence with a Debt Settlement Co.

When my husband got laid off from his job shortly after losing the rental house we were selling to a major flood, I knew we were in trouble. Searching the internet, I found a place that claimed they could help "settle" my cc debts and that by joining them, it would put a stop to all the harrassment I was enduring.

Yes, they did stop all forms of communication from the CA's. Their fee was a percentage of of the accumalitve debt. I was allowed full control of the savings, however their monthly fee was debited from the account for the agreed upon 18mos. They wound up with a substantial amount of money!

Not long after signing with the company, an attorney here in Florida bypassed the settlement company and took my straight to court.

The amount owed us a bit under 4k. The account was in my name only, and my income is s.s. disability.

I was assured by the settlement co, not to worry as there was not much they could do to me.

As scary as going to court was, I have learned that it was not the end of the world. Eventually a judgement was entered against me.

The next year, the law office called me back to a hearing to see if they could enforce said judgement and i was asked if i had any bank accounts IN MY NAME ONLY and if my house was HOMESTEADED, and that was it.!

I really wanted to put this story out for two reasons;

KNOW that signing on with a settlement co will NOT keep the CA from sueing you, even if it seems you are judgement proof.

And second, if you do have to go to court, don't make yourself sick over this.

It's not worth it. No one is going to put you in jail.

I am still facing more trials to come as we can no longer afford a boat we owe on and must soon "give it back" bc the bank will not work with us, even though I have never been late with it before.

READ the fine print .. I would have saved myself thousands of dollars from the settlement company and slept alot better had I found this forum before!

[Jackie2]

Hi, I am new here. Found this from a radio show on Blogtalk. I am glad I found it. I wanted to share with you my expeirence with a Debt Settlement Co.

When my husband got laid off from his job shortly after losing the rental house we were selling to a major flood, I knew we were in trouble. Searching the internet, I found a place that claimed they could help "settle" my cc debts and that by joining them, it would put a stop to all the harrassment I was enduring.

Yes, they did stop all forms of communication from the CA's. Their fee was a percentage of of the accumalitve debt. I was allowed full control of the savings, however their monthly fee was debited from the account for the agreed upon 18mos. They wound up with a substantial amount of money!

Not long after signing with the company, an attorney here in Florida bypassed the settlement company and took my straight to court.

The amount owed us a bit under 4k. The account was in my name only, and my income is s.s. disability.

I was assured by the settlement co, not to worry as there was not much they could do to me.

As scary as going to court was, I have learned that it was not the end of the world. Eventually a judgement was entered against me.

The next year, the law office called me back to a hearing to see if they could enforce said judgement and i was asked if i had any bank accounts IN MY NAME ONLY and if my house was HOMESTEADED, and that was it.!

I really wanted to put this story out for two reasons;

KNOW that signing on with a settlement co will NOT keep the CA from sueing you, even if it seems you are judgement proof.

And second, if you do have to go to court, don't make yourself sick over this.

It's not worth it. No one is going to put you in jail.

I am still facing more trials to come as we can no longer afford a boat we owe on and must soon "give it back" bc the bank will not work with us, even though I have never been late with it before.

READ the fine print .. I would have saved myself thousands of dollars from the settlement company and slept alot better had I found this forum before!

wait a minute. you're on ss disability? best to my knowledge that money is exempt. not even the court can take that from you.

as far as the boat. Probably have to sell it for what you owe. Find out what your buy out amount is. You might be able to unload it before you get stuck between a rock and a hard place.

if the bank takes the boat it will be auctioned at less than what you could sell it for and you are still responsible for the difference.

PS...welcome to the forum.

[deltadawn]

Thank you for sharing your experience with a debt management company. There have been many posts on this site that have warned people that a debt management company might put them in futher financial jeapordy; however, your story may cause someone to stop and think about jumping into something that may financially destroy them.

Your story touches the heart. I am so glad that you found this site because it will not only give you support but help you make sound financial decisions in the future and attempt to help you in dealing with past mistakes. And of course you may have already contributed by sharing.

Although I am fairly new to this site, I rejoice in other people's success.

A good place to start is:

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=277579

This gives you the basic steps on where and how to begin your credit repair. Even though I thought some of the steps were a little too simplistic and trivial;

however, I followed them and realized why they were important as time went by.

It will take time. It will take determination. It will not be easy. But, it will be worthwhile.

Wishing you all the success.

[Ahntara]

I'm glad you shared your story. Dozens of times each day I see ads for settlement companies, Consumer Credit Scoundreling and Free Credit Report.com. Nobody's out there informing the (unfortunate) consumer of the implications.

Yes, enrolling in a debt-settlement program, CCC or anything else will NOT prevent all lawsuits. If you owe money, you can be sued. Each creditor makes the decision based on their own criteria and business policies. In your case, even though you are essentially 'judgment proof', have only garnishment-exempt income and your ({I'm assuming} jointly titled, homesteaded) house can't be seized, the creditor still wants to add their lien to the property. They may not be able to prevent you from selling or refinancing. But it's in their best interests to get their name out there on some official record as an unpaid creditor of yours. That's why they proceeded with a lawsuit despite the lack of a fruitful outcome.

All I can add is, Pass the Word. We're here and are willing to help, for free. Many of us have been there and climbed up from the pits. I know personally that many who post here do so only to spread the truth and help consumers who have no where else to turn. I wish you luck!

[Robert Nashville/Savannah]

Welcome to the board.

You've gotten good advice about the boat...if you can reach someone at the bank (by bank I mean whoever holds the lien) with a brain, they ought to be able to see that they will wind up better off if they let you short sell the boat and then sign an unsecured loan for whateve the difference is (basically, they are already an unsecured creditor anyway).

Of course it would be WONDERFUL if they would let you short sell without recourse but I doubt that will happen.

Of course in difficult economic times, luxury items become a real "luxury" so it may be that they are just dealing with so many "stories" that they are just sort of giving up and don't really care enough to take the time and effort to work with you...but it never hurts to keep asking.

Just remember it's just "stuff".

[mermaid]

It is wonderful to log back in here and see responses. Thank you so much. I did put the word out that the boat is for sale, and I will consider selling it and taking on the loan for any difference in what wind up owing. Unfortunately, boats are not selling very well here, as most people are hurting from the cost of gas and insurance.

It's amazing how quickly things can change from year to year. When we bought this house, our payments were easy, and within a year, it doubled from the taxes and insurance rising! That, with the two pay cuts put us in this situation. I know I am not the only one outthere going through this kind of thing, and I am thankful I have the house I am in.

Its good to know I have a place to go to learn things. I read all about the 1099's in the forum and I have learned much.

Looking forward to getting to know everyone!