Debt Settlement Qestion

[mlevesque308]

I closed my checking and savings account today and reopened new ones. I was afraid that the debt settlement company and collection agency would take the $968.50 on 2/28. The Debt Settlement company said they contacted the collection agency to let them know I would be cancelling the payments, and then they tell me I owe them $1093.67??? Owe really, well get inline These people kill me; they are all nice when they are feeding you a line of bull. Thanks for the input guys, It's really been helpful.

[justbroke]

I never knew that Debt Settlement companies would bleed you dry. Well, I should not talk. My Chapter 13 Trustee was getting over $700/month to write 6 checks each month. LOL!

[mlevesque308]

What???? OMG, now you are making me nervous.

[Floridagail]

Glad you closed your account, I hope it is with a bank you do not owe any loans or such. Smart move to do that right away.

[ksgirl38]

I closed my checking and savings account today and reopened new ones. I was afraid that the debt settlement company and collection agency would take the $968.50 on 2/28. The Debt Settlement company said they contacted the collection agency to let them know I would be cancelling the payments, and then they tell me I owe them $1093.67??? Owe really, well get inline These people kill me; they are all nice when they are feeding you a line of bull. Thanks for the input guys, It's really been helpful.

My bank tried telling me that I owed them money too when I closed out my account. It was under $100, but I still disagreed and just listed them on the BK. It was their screw up anyway. You could do the same.

[justbroke]

What???? OMG, now you are making me nervous.

I was in a Chapter 13 and way way way way over the median with a large mortgage payment, arrears, taxes, and cars. Remember, the Trustee gets a 10% dividend. I would not worry about that dividend. It comes from what would be your disposible monthly income (DMI). I like to say it's directly proportional to your DMI, since it's 10% of your secured, administrative, and priority debt payments.

So my unsecured creditors got nothing while the Trustee got... almost $10,000 over the course of the 20 months I was in the plan. Interesting if you think about it! In your case, please do not worry about MY case. My Trustee was paying out over $7,000/month at the time my Chapter 13 was converted.

[mlevesque308]

So, I guess some of the large number out there, could be people paying their houses and cars through the plan, and not really DMI toward unsecured.

I think I'm learning.

[justbroke]

So, I guess some of the large number out there, could be people paying their houses and cars through the plan, and not really DMI toward unsecured.

I'd like to meet the person, with a spouse, kids, a mortgage, and several cars, that has $7,000/month in DMI! I wonder what s/he does for work! They'd probably be in a Chapter 11 anyhow (I almost was in one).