Filing BK after withdrawal from debt settlement companies

[ForumReader]

I have looked everywhere on this forum related to debt settlement companies and what it is like to withdraw from them and file BK. So I thought to start this thread for anybody who has had this experience and would like to share his or her feelings being a victim of a debt settlement company and then withdrawing going through the BK route and any feedbacks related to this.

I apologize if there is a similar thread to mine. I am still in shock from what the debt settlement company did to me and would like to seek feedback from others who went through what I went through. Thanks!

[JRScott]

DPMs are largely scams. They seldom help the individual and most people ultimately file bankruptcy.

The first thing you might find out is the DPM really hasn't been paying or did not negotiate with your creditors as you thought they did. Thus most likely you are late on everything and have been since the start. The moment you leave the program the phone will start ringing most likely. Just get an answering machine and let it screen your calls.

Next determine where you stand. You'll need to have a list of income from all sources and documentation. Then you need a list of all debt and documentation wherever possible. Do not be afraid if you cannot get all this at once. You'll need tax returns for the last 3 years. You can get them from the irs if you didn't keep copies. You'll need any mortgage, home, personal loan, student loan (not dischargeable), back taxes (not dischargeable), etc that you owe and any agreements associated with them. Then you need to take your little packet and see 3-4 bankruptcy attorneys in your area, most offer a free initial consultation.

You are not the first this has happened to. It may seem daunting at first but as you work through it you'll feel better and get yourself in a better position.

[jadams]

I think the OP already did that and already filed BK.

Make sure you listed the payments you made to the debt settlement company as well as any funds they're holding "in escrow" for you.

Depending on how far back you exited the plan, perhaps the trustee will take interest and sue them to recover some of the payments. I'm sure I'm not the only one that would enjoy that happening to a shady debt settlement company.

[ForumReader]

Thanks, yes I have listed this debt settlement (DS) company in my BK package how I came to this position. The lawyer did not say though that the trustee might take interest in this DS company and sue them for payments. I withdrew from the debt program in June. I don't know how this would affect my 341 meeting with the trustee the fact I was in a DS program before withdrawing and then filing for BK. I am from VA and this DS co is located in TX.

[klandsb]

GO to abcnews.com.. The ds co called Credit Solutions is being sued by the attorney general . They are one of the largest and in Texas so I thought this might be your case. In my case I was with Credit Consultants and am in the black for $3012.00 plus...I am trying every avenue to get a refund and hitting all brick walls.
Please read the article and let me know your thoughts.

P.S. I feel so used by those people. I truly believed I could be out of debt in 3 yrs. MY only plus is that I was only in it for 8mths..

[ForumReader]

GO to abcnews.com.. The ds co called Credit Solutions is being sued by the attorney general . They are one of the largest and in Texas so I thought this might be your case. In my case I was with Credit Consultants and am in the black for $3012.00 plus...I am trying every avenue to get a refund and hitting all brick walls.
Please read the article and let me know your thoughts.

P.S. I feel so used by those people. I truly believed I could be out of debt in 3 yrs. MY only plus is that I was only in it for 8mths..

Thanks for the info. I will go to abcnews.com and look for the article. Mine was called Halo Debt Solutions, sounds like quite a bit of shady debt settlement companies down there in TX. So are you suggesting I write a letter to the attorney general of VA about this company? I certainly hope you can get your refund back. Let me know if you are able to. I don't know about mine because HDS had a really thick packet about how the fees were not to be refundable and even had that word in bold in several places of the packet. I have paid over $4K to them since Nov. and withdrew in June as mentioned in my earlier post. I don't know how for the life of me, that they had me sucked in believing debt can be wiped out within 36 months, NOT, but depending on how much debt a debtor has and has money to work with.

Anyway, I will be back to post my thoughts after I read the ABCnews article.

[ForumReader]

GO to abcnews.com.. The ds co called Credit Solutions is being sued by the attorney general . They are one of the largest and in Texas so I thought this might be your case. In my case I was with Credit Consultants and am in the black for $3012.00 plus...I am trying every avenue to get a refund and hitting all brick walls.
Please read the article and let me know your thoughts.

P.S. I feel so used by those people. I truly believed I could be out of debt in 3 yrs. MY only plus is that I was only in it for 8mths..

Klandsb, could you please post the link to the article? I could not find it from abcnews.com. Is it a very recent article? Thanks!

[klandsb]

Try this:

http://abcnews.go.com/Business/comments?type=story&id=7932088

If that doesnt work go to abcnews.com and type in on the search box
credit solutions and it should come up..
I dont know if sending your Attorney General a letter w/help or not. I went to my states attorney generals site and they had a complaint form I filled out.
It at least gives me peace of mind to know that I am trying to get something done about these scumbags....

[keepswimming]

The attorney we are working with told me that these settlement companies are third parties, so the payments to them will not be viewed as preferential treatment, not sure if that makes them immune to anything in terms of trustee, etc. I tried getting money back from them myself a couple months back and they talked me into staying and also stayed firm in that they truly think they have helped me. *gasp*