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I Pulled Out From My Debt Settlement Company. Should I Go With a Local Attorney? – Kimberly

“Dear Steve,

I am with a debt sttlement company. Was with Allegro but after reading a blog you had I pulled out of them.

I am with another debt settlement company now. Have once again paid all my upfront fees. What happens if they go under? My creditors will not care and I just do not have a lot of money to work with for pay offs. These are all unsecured debt. What can the companies do to me? If I can not pay can they do anything? I do not think they can put you in jail can they? Is there a better alternative for me? Possibly a local attorney that does this type of thing? I cant do bankrupcy,but isnt there a plan where it is all consolidated and you only make 1 payment a month. Please advise me.

Thank You,

Kimberly”

Dear Kimberly,

We are entering a period where many debt settlement companies are projected to fail as the new rules regarding fees go into force. For contracts that consumers enter into after October 27, 2010 the debt settlement company may not charge any advance fees for debt settlement service before the debt is actually settled.

Why can’t you do bankruptcy? Post your answer in the comments section below and once I hear from you we can move forward with this.

The reason why your creditors will not care if your debt settlement company goes out of business is because it has nothing to do with your creditors. It is a decision you decided to make to go to a debt settlement company instead of dealing with the creditor.

If you want to explore a solution other than bankruptcy then I suggest you consult with debt coach Damon Day and spend some time talking through your situation and let him guide you to a solution based on your situation.

By the way, the time is drawing close to the cutoff date for getting your claim into the bankruptcy court for any money Allegro Law owed you when they went bankrupt. If you received your notice from the bankruptcy court, return it ASAP.

READ  My Debt Settlement Company Went Out of Business

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.

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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.

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