Debt settlement company

I receive e-mails every week from people who have had the misfortune of receiving a summons notice on their doorstep or the joy of having a stranger sidle up to them and say, “You’ve been served.”

Not fun. Oftentimes, these same people tell me that the first thing they did was to pick up the phone, call the collection agent or collection attorney in many cases and try to work out a payment plan or settlement agreement. This is WRONG, WRONG, WRONG.

Once you have been served a summons, this means that the collection agency is SUING YOU. You are being sued and the collection agency is now the Plaintiff and you are the Defendant. Any and ALL communication with the Plaintiff should be done via written correspondence only.

It’s too late for “I’ll send you $50 buck a month, I promise.” Way too late. Now is the time to take responsibility for your financial future and face your fears (debt) head on. Even if the collector was to agree to a payment plan, they cannot be trusted. While you are “working it out” they could be in the process of putting a lien on your property and searching for your bank account information in order to seize your assets.

Here’s what you need to do. First of all, DO NOT BE INTIMIDATED. This is difficult, after all I’m sure you feel badly about the debt in the first place and it’s probably been haunting you for years. The sad truth is that many of these debt lawsuits are brought about on out-of-statute debt and the collection agencies and debt attorneys are notorious for re-aging the DOLA or Date of Last Activity on your credit report. It’s in your best interest to dig up any old credit reports and bank statements to prove the the date of the last payment you made on the defaulted account. If that date is past your state’s statute of limitations on open credit card debt, they have the right to try and collect, but they cannot sue you and must drop the lawsuit.

Additionally, very rarely is a debtor sued for the actual amount they owe…penalties, interest, and other assorted fees are generally tacked on to the balance. Make them prove their case!

There are many other defenses that can be raised against one of these collectors. The key is that you need to communicate with them through the court system. They don’t expect you to fight back, over 96% of debt lawsuits end in default judgment. The chances of them backing off and dropping the lawsuit are HUGE if you take the time to properly format what is called a Notice of Appearance, Answer, and Certificate of Service.

It takes some time and research to properly file these documents, but it’s your financial future at stake. A default judgment can not only freeze your bank account or garnish your wages but it will also ruin your credit for a minimum of 7 years. A few states offer basic templates for the forms you will need to file with the court, a simple Google search should offer up some resources. You can purchase Word templates (w/ affirmative defenses for third-party debt collectors) for the “Answer to Complaint” document and more at www.IHaveBeenServed.Info and alternatively there are very helpful people on several internet “debt” message boards who can offer up advice when drafting your own documents.

Additionally, you should fax and mail (certified, return receipt) a Cease & Desist Letter to the creditor informing them that they must communicate you with via written correspondence only and now that they know how to communicate with you they must refrain from contacting any of your neighbors, friends, relatives or employees in an attempt to collect their debt. If they violate your request, you can threaten to sue them for an infraction of the FDCPA (Fair Debt Collection Practices Act) which allows $1,000 for each violation.

Now is the time to action. If you do nothing, the creditors will find your assets and take them. Bottom line. File your Answer and other supporting documents and wait and see. The best that can happen? They won’t want to fight you in court and drop the lawsuit (they rarely have the supporting documentation to back up their claims) or you’ll receive a courtdate and you’ll be given the chance to work out a settlement agreement at that time. Either way you will have avoided a default judgement which is looked upon as poorly as bankruptcy in many cases.

Fight back! You have nothing to lose and everything to gain.

By: Jay M Johnson

Are you over your head in debt? Thinking about using a debt settlement company service?
Debt settlement is relatively new in Canada. It is a bankruptcy alternative for people who have over serious credit problems.

DEBT SETTLEMENT DESCRIBED
Debt settlement is when you or a company that represents you approaches your creditors and tries to negotiate a percentage off your current principal and interest owing.

Example – You owe the following amounts:

Credit Card #1: $ 2,500

Credit Card #2: $ 5,000

Credit Card #3: $12,500

Car #1 loan: $22,900

Line of credit: $14,000

Total Owing: $56,900

THE PROBLEM STARTS – you just got sick and can’t work and your spouse got moved to part time hours.

All of a sudden the debt that was well within your means is now out of reach payment wise.

This type of scenario causes a great deal of stress on the husband and wife and their children. It’s enough stress to cause havoc with your health. This type of scenario is becoming more common place in Canada.

In this example, you would approach your creditors and tell them that you’re not able to pay your bills, and would like to settle your debts at 50

If you’re having financial difficulties, you might have heard of debt settlement as a form of debt relief. But how do you find a right agency that is good for you? How do you comb through all the shady agencies that promise the moon and the stars or the scam artists that only want your money?

When searching for settlement options, consider looking locally for agencies that provide this service. It will be much easier for you to check out their background. Local companies may offer you the chance to speak to their past customers and find out first-hand about their experiences with the agency.

You may want to ask your regional bank if they offer debt settlement advice. Some might provide this service as small separate businesses.

A golden rule of thumb should be checking your company of choice with the Better Business Bureau. If they have a poor customer history, that should raise a red flag about their ability to provide what they promise. You should also check out how long they have been in the business. Older companies tend to be more reliable, as they’ve gathered enough experience to know what the best plan of action they need to implement for your financial situation. Reputable debt settlement companies will often charge low fees for their services. However, be careful of companies that charge extremely low or high fees, as these might be scams.

Searching online for settlement agencies will bring up a plethora of agencies. However, be extra careful when giving away personal information to these companies. Most of them are fake companies and websites designed to gather bank information and social security numbers.

Finding the right debt settlement company could be slow at first, but a debt-free solution is well worth the wait.

By: Lisa Archer-Jones