Debt Elimination a Scam?needing advice
Before I file for chapter 7 (I have $85,000 in debt and only earn
$90,000/year) due to busness failure, I have seen sites ont eh web that
offer to ELIMINATE debt - not reduction but elimination through a check
writing program.
Onme place is scales of justice.net
anyone here know more about these things - do they work are they a scam - I
cannot find any info about them on the web -
polease help
_They claim they will negotiate with your creditors to lower your debts. In
fact, if you are not already aware, your creditors are already quite
willing to drop the over-limit and late fees and have you pay the
remainder. Your check writing program will require you to pay the remainder
to your creditors _plus_ several thousand dollars to the "debt-elimination"
service. When you are done paying everybody in 3-5 or more years, your
credit rating will be no better off than if you had just filed a Chapter
13. You can recover your credit rating faster by filing for a Chapter 7 or
13 right now.
_correct. Total scam. I am curretly in litigation against one of these
companies right now! Here is one bit of advice from a man who has been
there. I can't say for 100% sure what will happen, but I can only speak for
MY case. IF you have no real property, just let the CC company discharge the
debt to a debt collector. Once it gets there there is nothing they can do
because you DO NOT owe the debt collection comapny a debt. You DO owe the CC
company, but you DO NOT owe the debt collector, so you can write them a very
elegant letter telling them to "f&*k off"! The will NOT come UNLESS you have
property AND owe them at least 20K! They will threaten but they won't come!
That's my experience anyway!
_I have known people got sued over a few thousand dollars (