debt negotiators

[hanjenden]

What is the name of your state?Alaska
I have seen a few posts on here with people asking if debt negotiation firms are a good alternative to bankruptcy. I will not name the one I used, but want to give people a bit of advice--run, don't walk away from these places.
They take advantage of people in vulnerable situations:They are only after your money. Had I filed BK a year ago after some serious family problems and a loss of employment, I would now be on my way to rebuilding my credit. These companies will say anything to get you to sign on with them, and you will never get the results that were promised. When you sign up with them they tell you to have your cc bills forwarded to them so they can better analyze your situation. I found out from the girl who had been handling my case that if you receive anything that needs to be signed for that they refuse it saying you are not there. Their contract states that the consumer will be kept informed of all important matters, HA!, how can they keep you informed if they refuse to accept the mail that they had you forward to them!! I sure wish I had not been so naive.

 

[Leslie Howard]

Thanks for the info!

My husband and I are going through major financial difficulty over something we found out about two weeks ago. We are trying to decide to file BK or try toughing it out. I just spoke with a Debt Neg. Co. today and was considering it as an option. On top of our current "new" situation ($32,000), we just lost $1700 to a credit counceling program that we started in May. After just two bank drafts, we found out that they were taken over by the government for fraud. They made one payment for us, the rest is gone! Maybe one day we will get a settlement but I don't hold my breath. What about these nonprofit agencies? Any advice?

 

[hanjenden]

I have also heard a lot of bad things about some of the "non profit" counsiling service. Research everything before making a decision. I'm sure there is someone on this board who can provide you with the name of a respected service if one exists. The problem with these services is that some creditors will not lower their interest rate for the program which in turn adds to your debt. With an approved Chapter 13 plan, they have to abide by what has been approved by the court. Good Luck with everything. I hope thing work out better for you than they have for us. I will be consulting a lawyer soon to see if I have a case against the negotiation firm. If I could get back some of the money I paid them maybe I can start picking up the pieces.