AGE 66 and husband is 61 tomorrow, I am considering going with a debt settlement co., it I have a friend that did this last year and he is being sued by Barclays and Walmart.
I don’t want to get sued if I go the debt settlement route. My husband is having a hard time getting a job and I am disabled. Any suggestions would be appreciated thanks.
Best company to use for debt settlement so I don’t get sued. Thx
The answer if you want any chance of being sued would be to avoid debt settlement and look at a solution like bankruptcy that would give you the most comprehensive legal protection from your creditors.
Here is why the risk of being sued always exists with debt settlement.
- To get into the creditor department that is willing and able to consider your offer for less than you owe you need to be in default on your debt.
- Typically you need to be at least 90-days-delinquent. Your debt will eventually charge-off and the default and charge-off will be reported on your credit report. A charge-off is purely an accounting function and you may receive a 1099-C form that is also reported to the IRS. If you are not insolvent then you may owe income tax on the forgiven debt.
- Creditors are not always efficient and not all creditors may sue fast or at all. Your friend is a good example of this.
- Another complication is if you don’t have the cash on hand to settle and will have to default for a longer period of time to save up the money to use for the settlement.
- The longer you are in default the higher the risk is of being sued. But creditor policies change and a creditor who sued quickly last year might not this year.
I know you wanted to know which is the best debt settlement company to use to not get sued, but that is an impossible question. No debt settlement company has control of creditors or their internal policies or procedures.
Frankly, given your age and health condition, I can’t imagine that debt settlement is the choice I would leap towards. It might just be that you are behind on saving for retirement with just your husband working.
In that case, the faster you can eliminate your debt and get back to living within your income and saving, is the most critical consideration.
To do this, bankruptcy is the least expensive and fastest way out of a horrible situation. Besides, those that file bankruptcy often do better financially than those who don’t.
If you are confused about what solution is the best for you I would suggest you talk to Damon Day and run through your current situation and the goals you would like to achieve. Damon is very talented in creating a customized plan to help you find the right path.