Comments on: Thinking about Debt Settlement? Think about this… http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/ McLeod Law Offices, Boston, Massachusetts. Consumer Bankruptcy, Business Bankruptcy, Litigation: Bankruptcy, Consumer & Debt. Fri, 11 Mar 2011 03:01:18 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Bill McLeod's Law Blog http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-147 Bill McLeod's Law Blog Tue, 11 Mar 2008 18:51:21 +0000 http://mcleodlawoffices.com/?p=204#comment-147 <strong>Another Reason to Avoid "Debt Settlement"</strong> I have written about so-called "debt settlement" companies that tout a benefit of paying off your debt quicker and cheaper. In the long run, consumers are left with less money and still at the door of the bankrutpcy court. From... Another Reason to Avoid “Debt Settlement”

I have written about so-called “debt settlement” companies that tout a benefit of paying off your debt quicker and cheaper. In the long run, consumers are left with less money and still at the door of the bankrutpcy court. From…

]]> By: Bill McLeod http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-146 Bill McLeod Tue, 18 Sep 2007 18:31:48 +0000 http://mcleodlawoffices.com/?p=204#comment-146 Tara, First, <b> my response is not legal advice.</b> You should speak with a local consumer protection/ consumer bankruptcy attorney - or you should contact me directly if you're in Massachusetts. Paying the credit card bill on time only to use it for groceries and other necessities is only going to catch up with you. If this is what's going on, then you're debt is way out of control. Think about this: if you're only making minimum payments, it's only a matter of time before your credit limit is reached, and most of your monthly payment is dedicated towards interest. In terms of your debt amount, I cannot tell if that amount is too high. If you're combined household income is $50K, then your unsecured debt is probably way too high. If you're income is $250K, it might not be as unmanageble. As far as your debt management plan, I think you may have answered your own question. The plan you're in could work if (1) everyone agrees to settle and (2) no one sues you or charges you other fees and costs. Bottom line: speak to an attorney NOW. Good luck, Bill McLeod Tara,

First, my response is not legal advice. You should speak with a local consumer protection/ consumer bankruptcy attorney – or you should contact me directly if you’re in Massachusetts.

Paying the credit card bill on time only to use it for groceries and other necessities is only going to catch up with you. If this is what’s going on, then you’re debt is way out of control. Think about this: if you’re only making minimum payments, it’s only a matter of time before your credit limit is reached, and most of your monthly payment is dedicated towards interest.

In terms of your debt amount, I cannot tell if that amount is too high. If you’re combined household income is $50K, then your unsecured debt is probably way too high. If you’re income is $250K, it might not be as unmanageble.

As far as your debt management plan, I think you may have answered your own question. The plan you’re in could work if (1) everyone agrees to settle and (2) no one sues you or charges you other fees and costs.

Bottom line: speak to an attorney NOW.

Good luck,

Bill McLeod

]]> By: Tara http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-145 Tara Sat, 15 Sep 2007 22:24:54 +0000 http://mcleodlawoffices.com/?p=204#comment-145 My husband recently went in on a business that failed. With prior unsecured debt we now face nearly $50K total. We have been researching debt settlement and bankruptcy and feel both are an easy way out but there are consequences to each. The debt settlement company I have been talking with tells me, yes there is no guarantee we won't be sued but my debt will be paid off in 3 years. From what I have read of other entries on your site we may have it paid (assuming they all would settle) but we would be facing law suits, harassing calls, and other fees, correct? At this point our credit is good in regards to on time payments but is bad in regards to debt to income ratio. We are not late on any payments but struggle every week for necessities because everything is paid on time and most of the time I pay a credit card bill on time but turn around and charge groceries, gas etc. I have contacted my creditors and asked for help but they won't help me because I do pay on time every month. What is your advice for me? --Tara My husband recently went in on a business that failed. With prior unsecured debt we now face nearly $50K total. We have been researching debt settlement and bankruptcy and feel both are an easy way out but there are consequences to each. The debt settlement company I have been talking with tells me, yes there is no guarantee we won’t be sued but my debt will be paid off in 3 years. From what I have read of other entries on your site we may have it paid (assuming they all would settle) but we would be facing law suits, harassing calls, and other fees, correct? At this point our credit is good in regards to on time payments but is bad in regards to debt to income ratio. We are not late on any payments but struggle every week for necessities because everything is paid on time and most of the time I pay a credit card bill on time but turn around and charge groceries, gas etc. I have contacted my creditors and asked for help but they won’t help me because I do pay on time every month. What is your advice for me?

–Tara

]]> By: Bill McLeod http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-144 Bill McLeod Fri, 14 Sep 2007 08:11:45 +0000 http://mcleodlawoffices.com/?p=204#comment-144 Teresa, I am happy to hear you have managed to settle with one credit card company, but it sounds like the Debt settlement program has not helped you with all of your debt issues - which I am sorry to hear about. While I am not an attorney licensed in Florida, and this is not legal advice, I think it is fair for me to assume that if you're getting calls at work from collectors and/or their attorneys, the program is not working as you originally contemplated. I don't know if you can file bankruptcy because I do not know all of the facts of your particular situation - and since your'e in Florida, I cannot advise you what to do (and I wouldn't do it here on this site). So here's what I recommend... Contact a local attorney in your area that concentrates in Consumer Bankruptcy. You can try your local bar association for a referral (there might be a listing in your local phone directory or on line), or you can also point your web browser to the <a href="http://nacba.org/" rel="nofollow">National Association of Consumer Bankruptcy Attorneys</a>, and click on the Attorney Finder located on the right side of the page. And for anyone else reading this, this is the best site that anyone in the US can start the search for a bankruptcy attorney). Don't delay - you might save yourself a $300 per month auto deduction payment. Good luck! Bill McLeod Teresa,

I am happy to hear you have managed to settle with one credit card company, but it sounds like the Debt settlement program has not helped you with all of your debt issues – which I am sorry to hear about. While I am not an attorney licensed in Florida, and this is not legal advice, I think it is fair for me to assume that if you’re getting calls at work from collectors and/or their attorneys, the program is not working as you originally contemplated.

I don’t know if you can file bankruptcy because I do not know all of the facts of your particular situation – and since your’e in Florida, I cannot advise you what to do (and I wouldn’t do it here on this site). So here’s what I recommend…

Contact a local attorney in your area that concentrates in Consumer Bankruptcy. You can try your local bar association for a referral (there might be a listing in your local phone directory or on line), or you can also point your web browser to the National Association of Consumer Bankruptcy Attorneys, and click on the Attorney Finder located on the right side of the page. And for anyone else reading this, this is the best site that anyone in the US can start the search for a bankruptcy attorney). Don’t delay – you might save yourself a $300 per month auto deduction payment.

Good luck!

Bill McLeod

]]> By: Teresa http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-143 Teresa Fri, 14 Sep 2007 05:04:12 +0000 http://mcleodlawoffices.com/?p=204#comment-143 We are presently in a Debt settlement program, it is very stressful,yes, but we have managed to settle with one credit card co. and now we are working with anothe But they still want payment until paid in ful. We have auto deduction to the debt settlement company of $300.00 monthly. Are we still able to file bankruptcy if this does not go well? Now we are getting attorney calls at our place of employment. We did this in lieu of filing bankruptcy. I had breast cancer surgery, 6 months of chemo, then 6 weeks of daily radiation. I missed a lot of work, had numerous medical bills (even with insurance), we fell so far behind it was impossible to catch up. We live in Florida. Thank you... We are presently in a Debt settlement program, it is very stressful,yes, but we have managed to settle with one credit card co. and now we are working with anothe But they still want payment until paid in ful. We have auto deduction to the debt settlement company of $300.00 monthly. Are we still able to file bankruptcy if this does not go well? Now we are getting attorney calls at our place of employment. We did this in lieu of filing bankruptcy. I had breast cancer surgery, 6 months of chemo, then 6 weeks of daily radiation. I missed a lot of work, had numerous medical bills (even with insurance), we fell so far behind it was impossible to catch up. We live in Florida. Thank you…

]]> By: Bill McLeod http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-142 Bill McLeod Sun, 05 Aug 2007 19:35:14 +0000 http://mcleodlawoffices.com/?p=204#comment-142 Sharon, If you need advice, please consult with an attorney. We cannot give legal advice on the website. If you're local (Massachusetts), please consider completing the contact form (see the link on the right menu, or giving us a call and letting us know a way of contacting you. If you do not reside in Massachusetts, we cannot offer you assistance. I recommend you contact your local bar association for a referral (check your local phone directory), or visit www.nacba.org and click on the "Find a Lawyer" link on the front page. Good luck! Bill McLeod Sharon,

If you need advice, please consult with an attorney. We cannot give legal advice on the website. If you’re local (Massachusetts), please consider completing the contact form (see the link on the right menu, or giving us a call and letting us know a way of contacting you.

If you do not reside in Massachusetts, we cannot offer you assistance. I recommend you contact your local bar association for a referral (check your local phone directory), or visit http://www.nacba.org and click on the “Find a Lawyer” link on the front page.

Good luck!

Bill McLeod

]]> By: sharon harrison http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-141 sharon harrison Sun, 05 Aug 2007 16:08:02 +0000 http://mcleodlawoffices.com/?p=204#comment-141 I really need advise on my debt settlement and the fact that I am being sued. I really need advise on my debt settlement and the fact that I am being sued.

]]> By: Steve http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-140 Steve Sun, 22 Jul 2007 19:33:51 +0000 http://mcleodlawoffices.com/?p=204#comment-140 Bill I agree with what you said about my comment earlier. There is no one size fits all for peoples debt situations. And you are right there are a number of very bad settlement companies and law firms. But on the other hand there are very good companies and law firms that do good jobs and really do help people out. Unfortunatley across the entire debt relief industry (credit counseling, BK, debt settlement) you have "scam" companies. These people for lack of a better work suck. They dismerit the industry as a whole. Anyway nice blog you have here Bill. I like it and nice action of conversation flow going through here too. Keep up the good work and good luck. Bill I agree with what you said about my comment earlier. There is no one size fits all for peoples debt situations. And you are right there are a number of very bad settlement companies and law firms. But on the other hand there are very good companies and law firms that do good jobs and really do help people out. Unfortunatley across the entire debt relief industry (credit counseling, BK, debt settlement) you have “scam” companies. These people for lack of a better work suck. They dismerit the industry as a whole. Anyway nice blog you have here Bill. I like it and nice action of conversation flow going through here too. Keep up the good work and good luck.

]]> By: Bill McLeod http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-139 Bill McLeod Fri, 20 Jul 2007 01:36:03 +0000 http://mcleodlawoffices.com/?p=204#comment-139 Hi Heather, First, let me say this: as I do not know where you live you should not contrue this information as legal advice. I cannot give legal advice on the site. Please review the Terms and Conditions of the site (the link is to the right). With that said, I can answer your question. When the bankruptcy laws were changed in 2005, there were important changes to the length of time that must pass before another bankruptcy petition may be filed. Under Section 727(a)(8) you cannot receive another Chapter 7 discharge if you received a discharge in a case that was commenced within the 8 year period prior to the filing of the petition. Under Section 1328(f)(1), you cannot get a Chapter 13 discharge if you received your Chapter 7 discharge during the 4 year period preceding your filing a Chapter 13 petition. I recommend that you speak with local bankruptcy counsel (please feel free to call me if you're located in Massachusetts). I urge you to do this as soon as possible, especially if you're already falling behind on monthly payments. Once an attorney has reviewed things - including the exact dates of filing - then you can get the advice you need. Also, I am going to be writing a post about this very topic soon. Please check back. Good luck! Bill McLeod Hi Heather,

First, let me say this: as I do not know where you live you should not contrue this information as legal advice. I cannot give legal advice on the site. Please review the Terms and Conditions of the site (the link is to the right). With that said, I can answer your question.

When the bankruptcy laws were changed in 2005, there were important changes to the length of time that must pass before another bankruptcy petition may be filed.

Under Section 727(a)(8) you cannot receive another Chapter 7 discharge if you received a discharge in a case that was commenced within the 8 year period prior to the filing of the petition.

Under Section 1328(f)(1), you cannot get a Chapter 13 discharge if you received your Chapter 7 discharge during the 4 year period preceding your filing a Chapter 13 petition.

I recommend that you speak with local bankruptcy counsel (please feel free to call me if you’re located in Massachusetts). I urge you to do this as soon as possible, especially if you’re already falling behind on monthly payments.

Once an attorney has reviewed things – including the exact dates of filing – then you can get the advice you need.

Also, I am going to be writing a post about this very topic soon. Please check back.

Good luck!

Bill McLeod

]]> By: heather http://mcleodlawoffices.com/2007/06/thinking-about-debt-settlement-think-about-this/comment-page-1/#comment-138 heather Fri, 20 Jul 2007 00:14:06 +0000 http://mcleodlawoffices.com/?p=204#comment-138 I have a ch 7 discharged off in 2002 because of a divorce. I have since cleaned up my credit and purchased a home which I have had for 3 years. I lost my $80k a year govt job 3 months ago and my sub prime mortgage can not be refinanced because I am unemployed. I stand to lose everything and can't affort the new mortgage pymts of $2,100. Is my only option bankruptcy again and if so, am I able to declare it again so soon? I have a ch 7 discharged off in 2002 because of a divorce. I have since cleaned up my credit and purchased a home which I have had for 3 years. I lost my $80k a year govt job 3 months ago and my sub prime mortgage can not be refinanced because I am unemployed. I stand to lose everything and can’t affort the new mortgage pymts of $2,100. Is my only option bankruptcy again and if so, am I able to declare it again so soon?

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