Debt Elimination A Scam?

Question:
Before I file for chapter 7 (I have $85,000 in debt and only earn $90,000/year) due to busness failure, I have seen sites ont eh web that offer to ELIMINATE debt - not reduction but elimination through a check writing program. Onme place is scales of justice.net anyone here know more about these things - do they work are they a scam - I cannot find any info about them on the web - polease help

Answer:
They claim they will negotiate with your creditors to lower your debts. In fact, if you are not already aware, your creditors are already quite willing to drop the over-limit and late fees and have you pay the remainder. Your check writing program will require you to pay the remainder to your creditors _plus_ several thousand dollars to the "debt-elimination" service. When you are done paying everybody in 3-5 or more years, your credit rating will be no better off than if you had just filed a Chapter 13. You can recover your credit rating faster by filing for a Chapter 7 or 13 right now. PWB is correct. Total scam. I am curretly in litigation against one of these companies right now! Here is one bit of advice from a man who has been there. I can't say for 100% sure what will happen, but I can only speak for MY case. IF you have no real property, just let the CC company discharge the debt to a debt collector. Once it gets there there is nothing they can do because you DO NOT owe the debt collection comapny a debt. You DO owe the CC company, but you DO NOT owe the debt collector, so you can write them a very elegant letter telling them to "f&*k off"! The will NOT come UNLESS you have property AND owe them at least 20K! They will threaten but they won't come! That's my experience anyway!





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