I was barely making ends meet after serving 10 years in the military.
I started a legitimate business with a copartner putting up christmas light. The money i made would pay off a card every year. It pretty much kept my balances down to a minimum. I retained a money manager from metlife. My uncle refered him to me. He suggested i take a neg-am home loan. After 6 months, he suggested i take the penalty and sell the home, rent for 5 years and try to rebuy with more money that i had put away. I spoke to my tax guy, he told me that they were rediculous. He gave me specific questions to ask and when i did, they lost it.
I fired them but im still in a bad situation. The difference is that now i have a maturing neg-am loan that matures this may and as they suggested, i paid all my bills with credit cards. As gas prices went up, my house payment went up, and the general prices of food went up, so did my credit cards.
I hired a lawyer recommended by Bill Handel. He took my money and soon after went to jail for child molestation. I was out the 5700 dollars. The feds pulled his license and i dont know how to get my money back.
I spoke to a lawyer off Bill handels Law site and they want me to pay 300$ to discuss it. I needed to do something. I was spiraling down fast. Keep in mind that I was still making every payment on time. My Fico was over 800. I would use my side job business to pay a card off every year. If I didnt pay it off, I would atleast bring it down considerably.
To make things worse, citibank sent my a letter saying that due to the economy, they are raising both my cards up to 29 point what ever. They lowered all my credit down to the max i had on the card plus maybe 200$. I called them and they said tough! If i cant pay it then I can opt out but I’d have to pay it off in a year. I ended up paying my American Express card late by one day because that was payday.
Now I had 3 card at 29 plus percent. Now i’m rea lly hurting. I had to do something. I called Covenant Debt Solutions refered by Bill Handel. I am having trouble with them as well. Every response is that they cant answer that question because they are not lawyers. In the beggining they talked my out of looking into bankruptcy. They spoke of guarantees and 3part promises. Now when I call they said they are indifferent. That using them is not the only choice and that its my decision either way. They pretty much dont care what i do. I asked about all the talk to get me to sign up and they told me “well of course their gonna tell you that, they’re trying to get your business” That its a seperate company or sales department that has nothing to do with them. Im hurting, worried and desperate.
The Covenant Debt Solutions group promised atleast 50% off the debt but most of the time it was like 70%. They werent allowed to advertise that because it didnt always happen. Citibank wont deal at all. They’ll take 10%off if I pay it off in 12 months or less. Can I really deal with them? Can I play hardball and be successful? Or should I just pay them what ever they want? I have to go to the first court hearing this thursday.
First off, thank you for serving in the military.
I’m so sorry you’ve had to deal with this string of mismatched advisers. Getting out of the negative am house would have been the best move but that’s water under the bridge now.
As far as getting screwed by the California attorney, I would urge you to contact the State Bar of California and talk to them about what happened. Some other states have victim compensation funds for consumers that are harmed by attorneys. In California I believe it is called the Client Security Fund.
Regarding the debt situation. If you are now getting sued then this situation has decompensated to a point where you probably need a fresh start. I think you need to talk to a local bankruptcy attorney and discuss your situation, do it today. Bankruptcy would stop the current lawsuit and give you a second chance on the other debt. Depending on your situation it could even totally wiped out the debt. And if the house is still an issue and you are way upside down in the mortgage you may even elect to hand the house back to the bank and discharge the mortgage in the same bankruptcy.
Bottom line is that if you are getting sued, you are most likely out of time so go talk to a bankruptcy attorney today. I think you will find after talking to them that it will provide you with a remedy that will address the situation and give you a second chance at having a better future.
You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact
Once you do talk to the bankruptcy attorney please come back and post an update in the comments. I want to know what it happening.Big Hug!
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