We have a debt problem and don’t know how to solve it???
We had some debt and went with a debt payment company to get it reduced and pay it off in 36 months.The recession hit and we lost our jobs, and things got really tight. We have 10 months left to repay it and we have taken out a pension fund to pay most of it off. We are just waiting for the paperwork to come to draw it out. We were assured from the debt company, we wont get sued etc.
However we are receiving a package apparently from a lawyer about the debt. We thought we were doing the right thing before but now i am freaking out about it all. I am starting a new job this week and my husband is laid off and just had surgery on both knees. It has been hard.
In the next ten months we would have it all paid off, using the fund , however if they are suing us now…what then??? Bankruptcy?? We don’t have the money now to pay it due to the recession…..??? But we will when the fund comes in. In addition, we paid the debt company a lot of money and if it doesnt work out it was all for nothing…..Please help us!!!
It sounds like you are in a debt settlement program. You can be sued and you will lose. The fact is you are not paying your debts and the creditor can exercise their legal rights under your contract with them to seek legal intervention to collect what is owed them.
I have written a lot about taking pension funds out to pay off debt. Your case is a classic example of why it is a horrible idea. So you take the pension funds out, you pay the taxes and penalties, you lose the growth potential for that money, and then what? You can still be sued.
Before you take any of that money out, I beg you to click here to find a local bankruptcy attorney. The irony is that it is often quicker to recover from bankruptcy and rebuild your credit than it is to have a string of delinquent debts, lawsuits and judgments.
You should be angry, it sounds like the debt settlement company was not entirely honest with you and they certainly did not make it clear that the solution you are in would not shield you from lawsuits.