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DOES BANKRUPCY IS MY ONLY OPTION?

Posted on: 10th Jan, 2007 08:50 am
ON 2003, I ASKED A \"COMPANY\" (MIAMI FL) TO TAKE CARE OF MY CREDIT CARD DEBTS (OVER 40K) HE ASKED FOR 20K TO CANCELL THEM (4 CREDIT CARDS) AND WILL FIX MY CREDIT REPORT. ( I ALWAY ASK HIM FOR RECIEPTS
& HE ALWAYS SAID NEW STORIES. NOW IM BEEN SUE (6-26-2006) FROM A COLLECTOR AGENCY? IN MY CREDIT REPORT APPEAR 3 CARDS WITH NO SETTLEMENT AND THE COLLECTOR AGENCY, I ALREADY CONTACT A LAWYER , FOR CHAPTER 7. DOES THIS IS MY ONLY OPTION? WHAT I CAN DO?
I CAN PAID...THANKS IN ADVANCE
Hi Rocketgir,

Welcome to Mortgagefit forum.
"ON 2003, I ASKED A "COMPANY" (MIAMI FL) TO TAKE CARE OF MY CREDIT CARD DEBTS (OVER 40K) HE ASKED FOR 20K TO CANCELL THEM (4 CREDIT CARDS) AND WILL FIX MY CREDIT REPORT. ( I ALWAY ASK HIM FOR RECIEPTS
& HE ALWAYS SAID NEW STORIES."
Do you have the documentation with the settlement company? You should call them and ask for details of negotiations done with your creditors. What plan did they figure out for you? You would have got some settlement done in three years. Consult an attorney and prepare a case against the settlement company.

Colin
Posted on: 10th Jan, 2007 10:07 am
Hi Rocketgir,

Collection agency has the right to take action because they didn't get any payment from you. Before judgment takes place, check the Statute of limitations in your state. If they get a legal case against you before the SOL expires, there are chances your wages can be garnished.

If the statutes are past, you won't need to file Chapter 7 for this account. However, if the SOL isn't expired, call the creditor and see if they have your file in their system. You may work out payment arrangements with them, without dealing with the Collection Agency.

Thanks
Blue
Posted on: 10th Jan, 2007 11:10 am
One thing I would like to add is that you may shop for another settlement company to take care of your file.
" FOR CHAPTER 7. DOES THIS IS MY ONLY OPTION? WHAT I CAN DO?"
Chapter 7 bankruptcy is an option, but it will hurt your credit, instead look for debt settlement plans before opting to file bankruptcy.
Posted on: 10th Jan, 2007 11:18 am
Hi Rocketgirl,

Making false promises to fix up credit report is quite common in the industry. I think you have become a victim of such a scam. Just think of it, you paid 20K to fix up credit card debts worth 40K! And, they haven't given you the receipts. If the company really wanted to help you, it would have given you the receipts.

I feel that the company hasn't done anything to clean your credit. It's just that they have been charging money from you. That's why the creditors have handed over your loan to a collection agency.

I feel you should talk to the collection agency as your loan has already been sold by the creditors. If this does not work, then you may consult a debt consolidation or debt settlement company.

Hope this information would be helpful for you.

God bless you.

Samantha
Posted on: 10th Jan, 2007 09:38 pm
hi rocketgirl,

first of all, you need to understand whether the collection agency has sent you a notice or is it a notice sent by the court. if the court has summoned you through the notice, you should file a reply to the summons asap.

filing bankruptcy is not the solution to this problem. instead, you can seek the help of debt settlement services. such a company will help in reducing the total debt amount thereby making it easier for you to become debt-free.

it appears to be a credit repair scam, and there's no use talking to your creditors now. if you have received any notice from the court, take help from a debt attorney. otherwise, consult a debt settlement agency.

feel free to share your problems and experiences with our community.

thanks,

caron.
Posted on: 10th Jan, 2007 10:06 pm
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