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I Went With DMB Financial Because They Were Rated High By TASC. – David

“Dear Steve,

If possible I could use some advice on my debt problem. A while back I decided that I needed to do something about my debt because I simply couldn’t keep up on the payments. I wanted to avoid bankruptcy at the time because I felt that I should at least make good on some of my debt.

I checked around and decided on a debt settlement program. I went with DMB Financial because they were rated high on the TASC site. So far they have settled two of my debts (one is almost finished) but I recently received a threat of a lawsuit which was actually served in a summons.

DMB helped me set up a payment plan to avoid any further action (a hundred dollars a month). Just the other day I received another threat from the same law firm that was representing the previous credit card this time on a different credit card. My problem now is that after 23 years I have lost my job (store closing).

I will soon be on unemployment and I don’t know if I’m going to be able to handle another monthly payment on top of everyday needs (food, gas, insurance, etc.). I may not even be able to stay with DMB. I’m to the point where I don’t what my next step is. Soon I will be living on a VERY fixed income and I see no options out there for me. Do you have any advice for me that could aleviate a lot of stress and help me get back on my feet.

Thanks for your time.

David”

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The Answer

Dear David,

When working with any debt relief provider the first step would be to contact them and ask for feedback about the hurdle you are facing. In your case that would be DMB Financial. If you did speak to them about this situation, what did they say about the most recent suit when you brought it to their attention?

The idea that you should or will be able to continue making debt settlement payments while you are on unemployment is probably a bad one. Unemployment benefits don’t make you rich, they provide a minimal standard to help you get by and don’t include an allowance to pay bills with it.

Unemployment is also limited. So without a replacement job the benefit income will run out at some point and you will be unable to care for yourself. If you continued making the debt payments through your unemployment and it runs out you will then be in a worse position, with your debts not resolved and no income.

It would be prudent for you to speak with a local bankruptcy attorney. You don’t need to go talk to them with the intention of filing bankruptcy but you need to educate yourself about the benefits it can provide you in this situation. Bankruptcy could block all lawsuits, stop all payments, and give you a fresh start.

Another option would be to do nothing, let the creditors sue you, and deal with the judgments when you find another job. Since the creditors could not garnish your unemployment benefits, it is a possible path to follow. But I don’t think that is a wise course. Standing by, doing nothing, and letting yourself get sued will increase your stress and life pressure at a time when life will be hard enough as it is.

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 Went With DMB Financial Because They Were Rated High By TASC.   David
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I Went With DMB Financial Because They Were Rated High By TASC. - David by

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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.
  • Cash Money

    I have been in the business and depending how much money you have to work with and how much debt you have, it may be best to file BK. Actually a better deal and alot less stressful. Alot of people will dive into their home equities etc and that does get them out faster, but leaves you with the responsibilities of paying off the heloc. I’d probably just file BK, .not for 10,000 but if your debts are substancial, 30-80k, there you go.
    I agree with Steve.

    • http://GetOutOfDebt.org Steve Rhode

      Interesting viewpoint, which I applaud by the way. Can you describe your experience in “the business” and what led you to decide bankruptcy might be the best solution?

  • Judy

    You seem to know a lot about DMB and most of what I read is positive. However,
    I signed up with them and their fee was
    40% of the money they saved by negotiating.

    I have heard and read that the new government law that they applaud limits fees to 15%. I can’t find the actual federal law, but I need to. Do I still have to pay the 40%? First man I spoke to there when I signed up said NO. Las guy who settled one card for me said, OH Yes, you signed our contract before the law was in effect. BUT I convinced him (just this one time, he said) to charge me only 15% as it was my first setlement. I think this is a con.

    Where can I see the law? The Federal Law.

    Please help,

    Judy

  • Judy

    You seem to know a lot about DMB and most of what I read is positive. However,
    I signed up with them and their fee was
    40% of the money they saved by negotiating.

    I have heard and read that the new government law that they applaud limits fees to 15%. I can’t find the actual federal law, but I need to. Do I still have to pay the 40%? First man I spoke to there when I signed up said NO. Las guy who settled one card for me said, OH Yes, you signed our contract before the law was in effect. BUT I convinced him (just this one time, he said) to charge me only 15% as it was my first setlement. I think this is a con.

    Where can I see the law? The Federal Law.

    Please help,

    Judy

  • awayout

    Thanks for your advice. You wouldn’t happen to know how to pick the right bankruptcy attorney? I’ve heard some horror stories about some. Once again thanks for your help. I will keep you posted.
    David

    • http://GetOutOfDebt.org Steve Rhode

      If you click on the bankruptcy attorney link in my response it will take you to a page that describes what to look for.

      Steve

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