Debt Settlement Not Working, What Next?

When our clients get into problems with their bills, they look for all types of solutions. Working more hours. Second and third jobs. Negotiating with their creditors. Reducing their payments. Debt settlement. Debt negotiation.

Many of the so-­called solutions of debt settlement and debt negotiation involve placing your trust in people and entities with whom you have never met, and you never will, because they are in a state or a city far from here.

They promise some wonderful solutions and sound reassuring on the phone and seem to have the right answers for all of your questions. You are satisfied, sign the papers, and start sending them money or allow them to take money right out of your bank account.

I can’t tell you if these organizations can help you. I have represented so many clients with such horror stories that I cannot justifiably recommend any of these agencies to anyone except for one of the local Pennsylvania agencies, Advantage CCCS. Advantage is honest and experienced and local to us here in Northwest and Southwest Pennsylvania. But even Advantage can’t help everyone.

Bankruptcy’s An Option

What if you enter into a contract with one of the out­-of-­state agencies and find that your payments are too high, or you are being sued, or it is just not working out? What can you do?

The good news is that you can still consider filing for relief under the Bankruptcy Code, which would mean either Chapter 7 or Chapter 13 in most instances. Either of these will automatically get you out of your so-­called agreement to make payments to these debt settlement or debt negotiation agencies. If you want to stop the payments from coming out of your checking or savings account, you can do that on your own. You simply tell the bank to terminate the authorization you previously gave for the agency to withdraw money from your account. This is your account, and your money.

You can call or e-mail us at Steidl and Steinberg. We will give you a free, fair, and honest evaluation of possible solutions to your problems. In fact, you can do this even before you cancel your contract with the out-­of-town agency. Meet with us and compare your options.