QUESTION
What do I do if I’m being summoned by the debt collector and left to file for bankruptcy?
Asked on May 20th, 2017 on Bankruptcy - Oregon
More details to this question:
A year ago, I was enrolled in Debt Consolidation. They have only settled one of my 5 credit cards I had with them. Now. I’m left with filing for bankruptcy. The Debt Consolidation told me to send them all the paper work from the debt collector, that they would handle it and never did anything about it.
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
Debt consolidation is a scam. They take your money and never settle your debt. You can file bankruptcy and eliminate these debts.
Answered on Aug 09th, 2017 at 9:48 AM
Filing BK may be your only option.
Answered on Aug 08th, 2017 at 5:33 PM
Debt consolidation is a fake term for debt settlement. If you do not save up enough money to pay the settlement as fast as the creditors act to collect through the legal system, settlement will not work. You may have unrealistic expectations. Whether or not you can elect bankruptcy to resolve your debt problems is not something I can conclude without a lot more information.
Answered on Aug 08th, 2017 at 5:33 PM
1 Award
No, they never do anything about it. They are in business to take your money. In any event, the creditor is going to start garnishing you if you do not get the bankruptcy filed quickly. You should also write the debt consolidation company and demand a refund of everything you paid them except for what they paid on the one settlement. Tell them you will tell the Attorney General's office that you think they ripped you off.
Answered on Aug 08th, 2017 at 5:32 PM
Your experience is all too common. There is a possibility that you can recover some of the money you paid for debt consolidation after you file for bankruptcy, but nothing you have done so far will protect you from a lawsuit by the debt collector. Only a bankruptcy will stop it. Consult with an experienced attorney soon.
Answered on Aug 08th, 2017 at 7:35 AM
Unfortunately this is very common. Debt collection companies promise to settle your debt but you just end up paying them an "administration fee" and your debt is not resolved. If you are still unable to pay your debt bankruptcy may be an option. You should consult with a bankruptcy attorney.
Answered on Aug 08th, 2017 at 7:35 AM