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Home > Ask The Get Out of Debt Experts > I Went into a Debt Settlement Program With Legal Helpers Debt Resolution Who Said it Was Very Unlikely We’d Be Sued. We Are Now Being Sued by 3 Creditors. – Al

I Went into a Debt Settlement Program With Legal Helpers Debt Resolution Who Said it Was Very Unlikely We’d Be Sued. We Are Now Being Sued by 3 Creditors. – Al

I recently had my pay cut at my job by 15%, and up to that point my family and I had already been living pretty much paycheck to paycheck. My wife had graduated from college with a bachelors degree, graduating top in her class. However, in 3 years since graduating, she has still not been able to find steady work (2 freelance jobs only), and on top of that we have incurred about $140K in student loans (interest included), plus we have about $55K in additional unsecured debt.

So back in September of 2010, I was contacted by someone from Legal Helpers Debt Resolution and after much discussion back and forth (and resistance from my wife) I was convinced that they would be able to help us with at least helping to settle our $55k debt in 4 years. Naturally one of my major concerns was avoiding any lawsuits, which they promptly assured me would be “VERY, highly unlikely.” Well, boy were they wrong (or deceitful, I should say). After 6 months in the p rogram, and paying over $700/month for their “legal representation,” I am now being sued by 3 of my creditors. I was able to answer each one, though one of the cases is already scheduled for court in mid-June. This situation, naturally, has put me in a terrible panic.

My question is: Though I have contacted a bankruptcy attorney, I’m rather nervous about this procedure. For one thing I don’t want to risk losing any of our assets, such as home, autos, computers, etc. And all of the forms that I have read to start the preparations scare the heck out of me with warnings of any assets not revealed can lead to imprisonment, etc..

Having said this, and after having already incurred my creditors wrath with litigation against me, would it be a waste of time for me to contact the 3 who are suing me and seeing if we can come to an amicable way to settle this to avoid any judgements and court proceedings?

If they know that I’m considering bankruptcy, is there a better chance that they will be willing to negotiate directly with me? I am very depressed about this, and I wish I’d never heard of Legal helpers, and worst of all I went forward with this despite my wife’s warnings. So things at home are not too great to say the least.

Any advice you can give would be greatly appreciated. (By the way, I did take your advice and followed your procedures for writing LHDR and asking for a full refund. I sent the letter Monday by certified mail, and I’ve been tracking it, so it should arrive today. Thanks for the advice- hoping for the refund, but at least I’m stopping the monthly payments for services that were never rendered.)

Al

I’m currently backed-up on answering questions so I’m posting some of the questions here for you to help answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

I Went into a Debt Settlement Program With Legal Helpers Debt Resolution Who Said it Was Very Unlikely Wed Be Sued. We Are Now Being Sued by 3 Creditors.   Al
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I Went into a Debt Settlement Program With Legal Helpers Debt Resolution Who Said it Was Very Unlikely We'd Be Sued. We Are Now Being Sued by 3 Creditors. - Al 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.
  • Errick

    If any LHDR client has an issue concerning their program just email [email protected].  Don’t forget to provide your account numbers, expiration dates, and the answers to all security questions. Seriously, if you have “retained” a “debt settlement lawyer” then you can and should be able to contact that lawyer directly, otherwise you are a scam victim on some level.  Obviously even lawyers play telephone tag, but you should at least receive return messages from the lawyer.

  • Legal Services Support Group

    If any LHDR client has an issue concerning their program just email [email protected]. We are the group that provides administrative support to LHDR. We will gladly talk directly with the individuals handling your file and will work towards solving your problem.   

  • Legal Services Support Group
  • Steve Rhode

    After the last flurry of Tonesal5 nonsensical responses I’ve decided to block Tonesal5 from the comments.

    While I always welcome an elevated conversation about topics, after giving Tonesal5 a very wide latitude to bring some value via comments, Tonesal5 is not adding any value or content Tonesal5 has been able to back up with verifiable facts. Instead the comments have been without added value and merit.

    If Tonesal5 wishes to be reconsidered for commenting then I would first welcome a well sourced, factual and approved guest post of at least 1,000 words from Tonesal5 to lay out Tonesal5′s point of view so we can finally understand what in the world Tonesal5′s point might be.

    Tonesal5, you will need to submit the guest post with your real identity to be considered as a credible source.

  • Steve Rhode

    What bk attorney network?

  • Tonesal5

    LOL Damon & Steve gets mad if you have good things to say about lhdr because it hurts there BK ATTORNEY NETWORK… sorry Damon just because i had a good experience doesnt mean i work for them. I also dont think they are having troubles selling a program thats worth the savings.

  • Damon Day

    I didn’t say it was the best. I said it may be and suggested he meet with a bankruptcy attorney. Did you read my response, or just get pissed because I am exposing the the horrible program that you sell to consumers every day?

    I wrote an entire paragraph about how meeting with the bankruptcy attorney is simply to get educated on the process and then make a decision.

    Why are you mad because I suggested the consumer get educated on their options? Does that make it harder to sell your Legal Helpers program?

  • Tonesal5

    Damon moves in to try to close the deal…. Damon how would you know bk is the best for her?

  • Tonesal5

    Damon moves in to try to close the deal…. Damon how would you know bk is the best for her?

    • http://DamonDay.com Damon Day

      I didn’t say it was the best. I said it may be and suggested he meet with a bankruptcy attorney. Did you read my response, or just get pissed because I am exposing the the horrible program that you sell to consumers every day?

      I wrote an entire paragraph about how meeting with the bankruptcy attorney is simply to get educated on the process and then make a decision.

      Why are you mad because I suggested the consumer get educated on their options? Does that make it harder to sell your Legal Helpers program?

      • Tonesal5

        LOL Damon & Steve gets mad if you have good things to say about lhdr because it hurts there BK ATTORNEY NETWORK… sorry Damon just because i had a good experience doesnt mean i work for them. I also dont think they are having troubles selling a program thats worth the savings.

      • http://GetOutOfDebt.org Steve Rhode

        What bk attorney network?

      • http://GetOutOfDebt.org Steve Rhode

        After the last flurry of Tonesal5 nonsensical responses I’ve decided to block Tonesal5 from the comments.

        While I always welcome an elevated conversation about topics, after giving Tonesal5 a very wide latitude to bring some value via comments, Tonesal5 is not adding any value or content Tonesal5 has been able to back up with verifiable facts. Instead the comments have been without added value and merit.

        If Tonesal5 wishes to be reconsidered for commenting then I would first welcome a well sourced, factual and approved guest post of at least 1,000 words from Tonesal5 to lay out Tonesal5′s point of view so we can finally understand what in the world Tonesal5′s point might be.

        Tonesal5, you will need to submit the guest post with your real identity to be considered as a credible source.

  • Damon Day

    Hello Al,
    Sorry to hear about your situation.  Unfortunately Legal Helpers nor anybody else can guarantee to prevent lawsuits, and based on the evidence that I have seen over the years, the steps that Legal Helpers takes seems to actually increase the chances that you will be sued and sued much sooner than if you simply didn’t pay your bill and did nothing.  So the big irony is that Legal Helpers and other programs that operate the way they do, actually get paid to make your situation worse.  If they told you that they would be able to protect you from getting sued, well then that is just a sales person telling you what you want to hear so he can collect a big chunk of that 700 a month or so for the last 8 months.

    Although I hope you can get a refund from Legal Helpers, you aren’t likely to see one.  As far as how to proceed moving forward, it may be that Bankruptcy is the best approach.  It is important to fill out those forms and meet with the attorney.  Remember, just meeting with the attorney to discuss your situation does not mean you are going to file.  You are giving him/her all of that information so you can have a discussion about chapter 7 vs chapter 13 and how each of them would effect you and your assets.  Then you can decide to move forward or not with the BK.

    There are obviously some major decisions that need to be made within the next 30 to 90 days given the current litigation against you.  If you would like to have a detailed consultation where I can review your overall financial situation and help you make some decisions about moving forward with settling your debts vs filing the BK, feel free to contact me through my website.

    http://getoutofdebt.org/Damon-

  • http://DamonDay.com Damon Day

    Hello Al,
    Sorry to hear about your situation.  Unfortunately Legal Helpers nor anybody else can guarantee to prevent lawsuits, and based on the evidence that I have seen over the years, the steps that Legal Helpers takes seems to actually increase the chances that you will be sued and sued much sooner than if you simply didn’t pay your bill and did nothing.  So the big irony is that Legal Helpers and other programs that operate the way they do, actually get paid to make your situation worse.  If they told you that they would be able to protect you from getting sued, well then that is just a sales person telling you what you want to hear so he can collect a big chunk of that 700 a month or so for the last 8 months.

    Although I hope you can get a refund from Legal Helpers, you aren’t likely to see one.  As far as how to proceed moving forward, it may be that Bankruptcy is the best approach.  It is important to fill out those forms and meet with the attorney.  Remember, just meeting with the attorney to discuss your situation does not mean you are going to file.  You are giving him/her all of that information so you can have a discussion about chapter 7 vs chapter 13 and how each of them would effect you and your assets.  Then you can decide to move forward or not with the BK.

    There are obviously some major decisions that need to be made within the next 30 to 90 days given the current litigation against you.  If you would like to have a detailed consultation where I can review your overall financial situation and help you make some decisions about moving forward with settling your debts vs filing the BK, feel free to contact me through my website.

    http://getoutofdebt.org/Damon-Day

  • Errick

    The answers to a lot of these questions depend on what state you live in.  But don’t let the forms deter you from filing bankruptcy.  They were designed by the lobbyists for the banks for precisely that purpose, to rattle you.

  • Errick

    The answers to a lot of these questions depend on what state you live in.  But don’t let the forms deter you from filing bankruptcy.  They were designed by the lobbyists for the banks for precisely that purpose, to rattle you.

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