What kind of debt can be resolved through a debt resolution program? 10 Answers as of August 26, 2011

What kind of debt can be resolved through a debt resolution program?

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Heupel Law
Heupel Law | Kevin Heupel
Unfortunately, it depends on the creditor more so than the type of debt.
Answer Applies to: Colorado
Replied: 8/26/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Pretty much all.
Answer Applies to: Washington
Replied: 8/24/2011
Dan Wilson Bankruptcy
Dan Wilson Bankruptcy | Dan Wilson
Be very careful. Most of the programs I have seen are not legitimate. For instance debt resolution company (company) accepts monthly payments of, hypothetically, $1000 a month. They promise to negotiate with your creditors. However, most creditors don't want payments, they want a lump sum to settle. So until your account with company accrues sufficient funds to make a settlement, no debts are settled. There is nothing to stop creditors from suing anyway. And the monthly payment you are making? A portion of it, sometimes more than half, is taken as fee by company. So you are paying $1000 a month but your account with company is increasing by only $500 a month. I have represented several bankruptcy clients after entering into such an arrangement that did nothing except waste their money. That said, when I was younger (much younger!) and had just graduated from grad school I used a nonprofit organization who actually distributed my monthly payments to my creditors until my debts were paid in full. They charged me something like 5% to cover postage. Look for such a program. I don't know if there are still any around. The company I used changed.
Answer Applies to: Colorado
Replied: 8/15/2011
Ross Smith, Attorney at Law
Ross Smith, Attorney at Law | Charles Ross Smith III
Debt Resolution plans are usually only effective on relatively small amounts of medical and credit card debt. They almost always have high, upfront fees. They don't stop the interest from accumulationg. And they don't stop those annoying phone calls. Typically, it takes a year before the debt resolution people managee to "resolve" the first debt. After they do that, they "go to sleep" in my experience and simply collect your money. In they end they are paid thousands of Dollars and do very little. They cost a lot more than a proper bankruptcy attorney. I would prefer to resolve my debts through a Chapter 13 Plan with a local attorney. Usually the initial consult is at no charge. Give that a try, if your debts are too much to pay on a monthy basis. A Chapter 13 is very powerful, court protected relief. You may be pleasantly surprised at how cheaply you can get out of debt. Good luck. Thank you for reading me. I hope you found this answer to be helpful. If it was indeed helpful, please click on the "thumbs up" block below. This answer is not intended to create an attorney/client relationship. It is general information that should be discussed with your own attorney. Because the law in other jurisdictions is different and the facts of each case are different, consumers cannot rely on the opinions expressed here.
Answer Applies to: Ohio
Replied: 8/13/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
There are hundreds of different debt resolution programs, some of which are scams. Contact a legitimate one such as MMI (Money Management International.) Some programs resolve consumer credit only, such as credit cards. Others handle a variety of debts, including court judgments and personal loans.
Answer Applies to: California
Replied: 8/12/2011
    Guardian Law Group PLLC
    Guardian Law Group PLLC | C. David Hester
    Almost any debt, but it really depends on the company or firm performing it, usually its limited to unsecured debts. I work with a national debt resolution firm that may be able to help you.
    Answer Applies to: Utah
    Replied: 8/12/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    If it works then usually credit card debt. I would be very careful as a lot of these so called debt consolidation companies can be trouble.
    Answer Applies to: California
    Replied: 8/12/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    They don't resolve debt. They take your money and give you promises until you finally get sued. Unless it's a nonprofit. You're better off to retain a lawyer and file bankruptcy.
    Answer Applies to: Virginia
    Replied: 8/12/2011
    Guerrieri & Cox
    Guerrieri & Cox | Michael A. Cox
    Many non-governmental debts can be resolved through debt resolution programs. There has to be a creditor holding the debt with authority to negotiate, so governmental debts where there is little discretion are often handled outside of debt resolution programs through whatever administrative remedies are available.
    Answer Applies to: Ohio
    Replied: 8/12/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Well, I really don't know. I do know that I see clients who are in debt settlement plans with judgements, wage garnishments and bank levies. They have no authority to stop these things. Only a bankruptcy can actually stop collection activity with the force of the law behind it.
    Answer Applies to: California
    Replied: 8/12/2011
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