What do I do if I’m being summoned by the debt collector and left to file for bankruptcy? 10 Answers as of August 09, 2017

A year ago, I was enrolled in Debt Consolidation. They have only settled one of my 5 credit cards I had with them. Now. I’m left with filing for bankruptcy. The Debt Consolidation told me to send them all the paper work from the debt collector, that they would handle it and never did anything about it.

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Ronald K. Nims LLC | Ronald K. Nims
Debt consolidation is a scam. They take your money and never settle your debt. You can file bankruptcy and eliminate these debts.
Answer Applies to: Ohio
Replied: 8/9/2017
OlsenDaines | Rex Daines
No, they never do anything about it. They are in business to take your money. In any event, the creditor is going to start garnishing you if you do not get the bankruptcy filed quickly. You should also write the debt consolidation company and demand a refund of everything you paid them except for what they paid on the one settlement. Tell them you will tell the Attorney General's office that you think they ripped you off.
Answer Applies to: Oregon
Replied: 8/8/2017
Danville Law Group | Scott Jordan
Speak to an attorney about bankruptcy.
Answer Applies to: California
Replied: 8/8/2017
Timothy Casey Theisen, P.A. | Tim Theisen
I hear that story, or a variation of it, all the time. You probably should have filed bankruptcy a year ago. These debt consolidation places make a living by getting people to fear bankruptcy. You very well may be entitled to sure them for a refund as well.
Answer Applies to: Minnesota
Replied: 8/8/2017
A Fresh Start
A Fresh Start | Dorothy G Bunce
Debt consolidation is a fake term for debt settlement. If you do not save up enough money to pay the settlement as fast as the creditors act to collect through the legal system, settlement will not work. You may have unrealistic expectations. Whether or not you can elect bankruptcy to resolve your debt problems is not something I can conclude without a lot more information.
Answer Applies to: Nevada
Replied: 8/8/2017
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Filing BK may be your only option.
    Answer Applies to: Colorado
    Replied: 8/8/2017
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    If you are being sued you should consult an attorney to help you. If you are considering bankruptcy, the filing of a bankruptcy can stop the lawsuit assuming you qualify. Consult an experienced bankruptcy attorney. You also may be entitled to a full or partial refund from the debt consolidation company. These companies are regulated under Chapter 394 of the Texas Finance Code. You can consult an attorney that practices consumer law for help, or if you will be filing bankruptcy your bankruptcy attorney may be able to help you obtain a refund.
    Answer Applies to: Texas
    Replied: 8/8/2017
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    This is why I think Debt Consolidation sucks. And it is expensive! They cannot guarantee a result. The sign on my door says "bankruptcy is not a bad word." See local counsel about filing.
    Answer Applies to: California
    Replied: 8/8/2017
    Garner Law Office
    Garner Law Office | Daniel Garner
    Your experience is all too common. There is a possibility that you can recover some of the money you paid for debt consolidation after you file for bankruptcy, but nothing you have done so far will protect you from a lawsuit by the debt collector. Only a bankruptcy will stop it. Consult with an experienced attorney soon.
    Answer Applies to: Oregon
    Replied: 8/8/2017
    Law Office of Kimberly Fives | Kimberly Fives
    Unfortunately this is very common. Debt collection companies promise to settle your debt but you just end up paying them an "administration fee" and your debt is not resolved. If you are still unable to pay your debt bankruptcy may be an option. You should consult with a bankruptcy attorney.
    Answer Applies to: California
    Replied: 8/8/2017
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