This is a difficult thread for me to start, but if it helps one person make the right choices (which, of course, I did not).
After my Ch7, I wanted to see if I could eliminate the remainder of my active debt (loans, etc.). I had not included some in the CH7 and I had accumulated a bit more after the filing. So I reconsidered using a debt relief firm, once again. I had used one previously and it was that firm (predatory as all get out) that got me to abandon them and file Ch7, as I should have, initially.
I found another firm that seemed to be "better." They calculated everything out, given my income stream, etc., and told me that all I had to pay them was $X a month for the remainder of the program (several years). In the mean time, they'd begin negotiations with the creditors in re: getting the amounts reduced, etc., which this company did. The monthly draft amount was reasonable for my budget, if that's what would happen over the entirety of the program. One by one, the debts have been settled. But here's what they don't tell you.
If the debt relief firm negotiates a settlement too quickly (i.e. doesn't spread it out over the life of the program as advertised), and your monthly draft isn't enough to cover it all), they can/will demand a much higher monthly draft than they quoted you initially. There could be several reasons why it was negotiated so quickly (ie. to prevent the creditor from taking legal action, etc because they're tired of waiting). Of course, you could very well, finish the program much faster/earlier, but that doesn't matter much if you don't have enough monthly income to cover the extra amounts! And if you deny that particular settlement, the firm will threaten you by saying the creditor is ready to take legal action against you to recover the debt, if you don't agree to the settlement they're offering. What can you do?
Well, I'm almost done with it (debt relief program) so I'm not going to give it up now. But, honestly, I'm thinking now that CH7 is a better alternative than those debt relief programs. I mean, supposedly with debt relief, your CR will get cleared up once the debts are paid off, but I have no guarantee of that. And I absolutely hate the fact that they force you to not pay those creditors directly that you enroll in their program (they say to offer better negotiation leverage) but at the same time, your FICO score suffers tremendously and you have no guarantee they'll eliminate the negative info once it's all resolved. You might have to file a ton of disputes to make that happen. We shall see.
Therefore, "Caveat Emptor." Be very careful with these debt relief programs. They are predatory as all get out. It may work for you. It may not. In my case, it does seem to be working, but at a very high cost to my present monthly discretionary income. Ideally, the best advice is just not to get in that level of debt that you need one.
Like my grandfather said, "Make it first.... Spend it second."
After my Ch7, I wanted to see if I could eliminate the remainder of my active debt (loans, etc.). I had not included some in the CH7 and I had accumulated a bit more after the filing. So I reconsidered using a debt relief firm, once again. I had used one previously and it was that firm (predatory as all get out) that got me to abandon them and file Ch7, as I should have, initially.
I found another firm that seemed to be "better." They calculated everything out, given my income stream, etc., and told me that all I had to pay them was $X a month for the remainder of the program (several years). In the mean time, they'd begin negotiations with the creditors in re: getting the amounts reduced, etc., which this company did. The monthly draft amount was reasonable for my budget, if that's what would happen over the entirety of the program. One by one, the debts have been settled. But here's what they don't tell you.
If the debt relief firm negotiates a settlement too quickly (i.e. doesn't spread it out over the life of the program as advertised), and your monthly draft isn't enough to cover it all), they can/will demand a much higher monthly draft than they quoted you initially. There could be several reasons why it was negotiated so quickly (ie. to prevent the creditor from taking legal action, etc because they're tired of waiting). Of course, you could very well, finish the program much faster/earlier, but that doesn't matter much if you don't have enough monthly income to cover the extra amounts! And if you deny that particular settlement, the firm will threaten you by saying the creditor is ready to take legal action against you to recover the debt, if you don't agree to the settlement they're offering. What can you do?
Well, I'm almost done with it (debt relief program) so I'm not going to give it up now. But, honestly, I'm thinking now that CH7 is a better alternative than those debt relief programs. I mean, supposedly with debt relief, your CR will get cleared up once the debts are paid off, but I have no guarantee of that. And I absolutely hate the fact that they force you to not pay those creditors directly that you enroll in their program (they say to offer better negotiation leverage) but at the same time, your FICO score suffers tremendously and you have no guarantee they'll eliminate the negative info once it's all resolved. You might have to file a ton of disputes to make that happen. We shall see.
Therefore, "Caveat Emptor." Be very careful with these debt relief programs. They are predatory as all get out. It may work for you. It may not. In my case, it does seem to be working, but at a very high cost to my present monthly discretionary income. Ideally, the best advice is just not to get in that level of debt that you need one.
Like my grandfather said, "Make it first.... Spend it second."
Bankruptcy Wizard
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