I made the minimum payments on all my debts this month, and didn’t have enough left to live on. I googled bankruptcy, and the debt resolution company came up with advertising saying don’t file bankruptcy. I signed up and they are supposed to settle my debt for half of what it is. My payments are going from $470 to $250 a month. I pay the company and they take the money and pay my creditors and the company’s fee which is 25% of the total debt. I am to stop paying my creditors and let the accounts go into collections so the company can negotiate with them. I’m going to be hounded with debt collection calls however. The company doesn’t want you talking to them however. I plan on not answering the phone or hanging up on them. Not paying one of my creditors at the end of the month frees up $232 I set aside to pay them and gave me enough to live on this month.
Is this a scam?
I dont want to give out financial advise. But bankruptcy is a way better option. Either way sounds like your credit is going to get fked.
Though it totally sounds like a scam.
İf i understand correctly don t sign any paper. Go for bankruptcy.you are mentally ill person. No one put you in hard situation. But these company put in you really hard situation.
Sounds like a scam, you can call all the companies you owe on your own, let them know you can no longer afford to pay and is there anything they will do for you before you apply to go bankrupt, most will make a deal
Oh no I really think you fell for a scam. They are everywhere now. Please tell me you didn’t let them have access to any of your information. If they said they don’t like to talk over the phone that’s a scam! Call the FBI fraud department immediately, even though they likely won’t be able to do anything after the fact. If they even get you to say the word Yes on the phone they have that recorded and can steal and defraud you. If you call the fbi fraud department they can at least let you know if it is a scam. I don’t want to scare you but if you get disability they could steal it or garnish wages from it. I would call them as well.
To stop debt collection calls all you have to do is tell them you only want to deal with the original creditor.
It’s a scam, if you just do it on your own you’ll save that 25% fee. Just let your bills go into collection and then negotiate for half the amount. Either way your credit is screwed.
Debt consolidation could be another solution where you replace all your debts with one longer maturity loan
Don’t go bankrupt. In the worst case just don’t pay, the collections will all fall off in 2-3 years anyway
Uhh… you should probably not do this. It sounds like a scam to me.
Well, no it’s not a scam. The company is Clear One Advantage, and it has an A+ rating by the Better Business Bureau. They are located in Baltimore, Maryland. They are like Consolidated Credit you see advertised on TV. ArkansasDebtRelief.org referred me to them.
Most of those companies make you pay money to them for a while. Then they start settling debts. Unfortunately it’s usually not much if any lower than what you could have settled for on your own.
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