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Home > Reader Questions > Signed Up With Safeguard Financial, Getting Sued, FBL Associates Wants Me to File Chapter 7 Bankruptcy. – Rich

Signed Up With Safeguard Financial, Getting Sued, FBL Associates Wants Me to File Chapter 7 Bankruptcy. – Rich

I signed up for debt settlement in May 2009 for two credit cards.
One was for $3,200 the other $12,500. This was done through Safegaurd Financial. I received civil action papers for the $3,200 for a court date in April for $4,500. The other credit card I have not heard anything. FBL Associates has contacted me and wants me to file for chapter 7. What is the best way to resolve this matter?

What direction and options do I have?

Rich

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Signed Up With Safeguard Financial, Getting Sued, FBL Associates Wants Me to File Chapter 7 Bankruptcy.   Rich
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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.
  • Damon Day

    Hello Rich,

    My first question would be how much money do you have saved up if you started a debt settlement back in May of last year. Luckily the lawsuit is on your smaller card. By now you should have enough saved to settle that account and keep it out of court.

    If you don’t have enough money saved up to settle the lawsuit than that means the settlement company was charging all their fees upfront and I would demand the money from them.

    So you have two issues. First you need to determine whether or not a BK is a more viable approach given your current circumstances.

    Second, I would look into how much money you have paid into the debt settlement company as service fees and look into getting that back if you feel there was any fraud or misrepresentation on the part of the debt settlement sales person.

    If you determine that BK is not a good route at this time, you should be able to settle with the law firm that filed the summons.

    Please let me know how much you have paid into the settlement company, and what they are saying is available to settle the account.

    http://getoutofdebt.org/Damon-Day

  • http://DamonDay.com Damon Day

    Hello Rich,My first question would be how much money do you have saved up if you started a debt settlement back in May of last year. Luckily the lawsuit is on your smaller card. By now you should have enough saved to settle that account and keep it out of court. If you don’t have enough money saved up to settle the lawsuit than that means the settlement company was charging all their fees upfront and I would demand the money from them.So you have two issues. First you need to determine whether or not a BK is a more viable approach given your current circumstances. Second, I would look into how much money you have paid into the debt settlement company as service fees and look into getting that back if you feel there was any fraud or misrepresentation on the part of the debt settlement sales person.If you determine that BK is not a good route at this time, you should be able to settle with the law firm that filed the summons.Please let me know how much you have paid into the settlement company, and what they are saying is available to settle the account.http://getoutofdebt.org/Damon-Day

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