…How prolonged does it take to revive credit after the process?
I’m deliberation the job. I’m not gentle with the little of what we listen to the "Counselors" revelation customers. These debt counselors have been revelation people to not compensate bills though to begin the assets comment which will be used to come to terms debt. It seems which the little people with extrinsic credit have been being speedy to all fall short their credit with no guarantee of successful debt negotiation. When we ask about petrify interpretation to backup success of debt traffic we get nowhere. Is there any plain report about this "industry"?
…Most credit counselors will tell you this and even bankrupcy attorney’s will mention something along the same lines.
If you are considering debt counseling, why not consider bankrupcy? Both will reflect as a major ding against your credit score and most banks and creditors look at debt negotiations and credit counseling companies like a bankrupcy.
Only difference is that bankrupcy will stay on your credit report 3 years more than a negative from your credit counseling/debt negotiations.
Your credit is already going to suffer, so I would agree with that advice. Paying youir debt now, will do you no good, unless you decide to pay it off completely. If you continuing paying on your debt, you run the risk of the creditor not taking that monies that you paid, and attaching it to your debt. They may keep it and call it payment of penalties and excessive fees or whatever. Yes, can dispute this and even take it to court, but my question would be why?
I did the samething 12 years ago, and it didn’t help me any.
Not only that, each state has limits (in years) as how long the creditor is given a right to sue to collect from you. These limits are based on your last payment to that debt. Everytime you make a payment, you give your creditor more ammunition to eventually sue you. For instance, the state of California has Statute of limitations on written contracts for 4 years (might have change by now, this was effective in 1987). That 4 years is based on the last payment made by the debtor. Once the debtor has stop paying on that particular debt, the creditor has 4 years in which they can pursue legal recourse (sue) against you.
Every state has a different statute of limitations on written and oral contracts.
Yes it’s pretty scary, but if you have the money already, I would hold onto it as there are many things that could go wrong if you do pay, unless you plan to pay it off with one shot. I would also consider claiming bankrupcy chapter 7. You can speak to a bankrupcy attorney to find out your options.
And that is why most debt settlement companies are scams. Not only does that tactic trash the person’s credit but most credit card companies will immediately sue when that debt settlement company contacts them. No matter what all the ads say, most creditors are not willing to accept settlements for less than full balance.
Even worse, many debt settlement companies never even make settlement offers. They just take the poor client’s payments.
You probably should pass on this job, unless you enjoy scamming people.
The reason that there is no "concrete data to backup success" is that there have not yet been any successes. That might be a slight exaggeration, but not by much. The best "solid information" available is a study done by the government of the State of California, which fund that the companies made no attempts to negotiate at all; they simply collected as much money as they could from the customers and then moved onto their next victims.
I have had friends go through bankruptcy and other friends go through debt consolidation. As long as they made their payments after their loan modification, those with debt consolidation had less of a hit on their credit rating, since at least they were trying to pay. You may get your bills reuced by as much as 40% if you speak to a reputable debt consolidation representative.