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I’m in a Debt Settlement Program With J Hass and I’m Being Sued. – Paul

“Dear Steve,

Bankruptcy vs Debt Settlement. I have enrolled in a debt settlement program and have been paying as requested for the past year. The company I am with is J Hass based in Arizona. I have been paying $457 a month and started in May of last year.

I currently have a little over $1800 in my notelworld account. I have three different creditor that I Owe around $34,000 to. I have been hit with less hours, elimination of overtime and my wife has faced the same. We are making significantly less and cannot pay the creditors and maintain are basic needs.

We entered into the program as we were told that the debt could be negotiated for about 40 to 60% of what was owed.

J Hass on their part has sent power of attorneys to the creditors but because their is so little in the account they can not offer a settlement. recently I was served with a summons on one of the larger acounts. j Hass contacted the creditor and requested that I set up monthoy payments with them and that they would settle later.

I informed the rep that I had no extra cash flow and that the money I was paying to them was substantial. i asked them to stop taking their fees at this time and settle the account for approximately $5000 which would be the accumulated amount of funds in January 2011 should j Hass agree to stop taking their funds at this time.

I am worried that this is a scam and will not settle any my account and run with the my trust account funds and then i am left in a worst situation. I am contemplating stopping the program all together, requesting a refund and filing bankruptcy. Can you provide me any insight?


Dear Paul,

The failure rate of debt settlement programs is huge. For the most part they don’t work and the debt settlement company takes all their fees up-front. The debt settlement company has no power or authority over the creditor and since your group sent the creditors a power of attorney I see you are not even represented by an attorney.

READ  Is There Anyway to Get My $7,000 Back From J Hass Group? They Did Nothing. - Cheryl

You MUST go talk to a local bankruptcy attorney ASAP. You can click here to find a local bankruptcy attorney if you like, but find one fast.

At the rate you are saving, your reduction in income and the level of debt you have I would bet a dozen donuts you will be sued by more than one creditor while you wait for the debt settlement company to take action.

Based on action in the works by the Senate and FTC I would not be surprised to see most front-loaded fee debt settlement companies to fail in the next year as those types of fees are outlawed.

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.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

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.


  • You will likely NEVER see that money! THERE ARE NO GUARANTEES IN DEBT SETTLEMENT!!!!!!!!
    There are companies that only get paid- with NO DOWNPAY/ENROLL fee AT settlement- If you had went with one of those companies, instead of a “law-group” or front-fee loaded company, you would have over $4,000 in that account- OR you might have been able to settle about $10k worth of debt already!
    The way things stand- the way they may continue, let the buyer beware I guess. Sorry

  • So, Steve when I back out of the debt settlement company do you believe there be a way to get the fees back that they already took? They have not realy provided me with any service other than answeringthe phone and faxing over power of attorneys to the creditors. Subsequently do you advise that I make no effort on my behalf to negotiate with the credit card companies to resolve this? I was thinking talking to them and see if they would wpork with me create a feasible plan. Thank you for your prompt response.

    • Paul,

      I can’t tell you specifically what you should do. You need to make up your own mind based on facts.

      If you are unhappy with the services provided to you by J Hass then you should tell them that and you are well within your right to ask for a refund. Now that does not mean they will give one to you but let’s take this in steps. Let me know what happens when you ask for one.

      Can you or should you talk to your creditors directly? Absolutely. It is well within your right to talk to your own creditors. But at the same time you need to find and talk to a local bankruptcy attorney so you can educate yourself about all of your options.


      • Steve, I have rescinded from J.Hass. I found there customer service and overall mission to be unprofessional, and misleading.

        After being in the prgram for one year I paid $5472 dollars to the program. In my current escrow account I have approximately $1600 as of this day. Therefore I have paid approximately $3872.00 dollars into the program. I have had no account settle andhave been served witha subpoena, and have been informed that i will be reciving a second very soon.
        I requested a refund from J. Hass so that I can address my debts and avoid a judgment. They very quiclky denied my request and opined that they were within their right to keep the $3800.00 for THE PROFESSIONAL SERVICES RENDERED?

        I am in a worse sitaution know and am facing a few judments against me. I would think being in the business of helping people they would consider my position. Thier focus in their response to me was to justify their profit. I will not lay down and allow them to just take my money. Can you help me with this?

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