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I Have Entered Into an Agreement With Settlement Corporation of America. I’m Concerned. – Scott

“Dear Steve,

I have entered into agreement with Settlement Corporation of America. No monies have yet changed hands. 1st payment due the 15th. I may well not be able to make it.

Background: Divorced, finalized 15 March, 2010. Equitable split. House, joint tenants, $125,000 left on note, for sale since Feb., asking $320,000. Owe $21,000 on ’06 GMC, for sale for $31,000. $50,000 in unsecured debt. Self employed general contractor, no work at all since October ’09.

Gross income ’09 $40,000. Gross income ’08 $700,000. All employees layed off 04/09.

Purchased boat for $30,000, put $10,000 into it to ready for passage to Panama to start program with Ministry of Labor and USAID. Shop tools and equipment loaded into shipping container ready to ship to Panama, replacement value: $80,000. Dismasted offshore en route. No insurance. Damages in excess of $35,000.

I have paid this month’s share of mortgage, $784.02. I can make this month’s truck payment, $757.00, and SCOA settlement amount of $750.00 plus the initiation costs of some $120? $600 remaining cash on hand. Dock rental due: $400. Electric use due: ? Other living expenses??? Have applied for at least 100 jobs over the last few weeks. Secured a part time gig, 5, 5-6hr. shifts over a four week period at $11.00/hr.

I’ve been told I cannot file bankruptcy as my assets/equity are too great. Though I have been thus far unable to liquidate them. .10-.20 cents on the dollar is unacceptable. Do I proceed with the SCOA payment on the 15th? Then what when I default an everything next month. My ex-wife will pay the entire mortgage next month should I be unable to contribute.

Scott”

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The Answer

Dear Scott,

I’m at a loss to see how participating with Settlement Corporation of America or any settlement company at this point helps you. If you had cash on hand to settle then a quick settlement approach might make sense but you have little to no income and in order to save up money to offer in settlement you’d have to stop paying everyone which is going to leave you in collections and possibly getting sued. A debt settlement approach also gives you no legal protection.

With so little cash on hand and a world of hurt about to rain down on you from this debt you need to click here to find a local bankruptcy attorney. Creditors will be more lenient than you assume in this case and this is something you absolutely need to deal with before you leave the country for any possible opportunity elsewhere.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

I Have Entered Into an Agreement With Settlement Corporation of America. Im Concerned.   Scott
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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