Debt Elimination A Scam?
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
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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