We are $95,000 in debt. We went to a bankruptcy attorney and were told we make too much money to file bankruptcy and they never got back to us. Our annual income is $140,000.00. My husband had to get a part time job so we could pay the monthly bills. This job provides $2000.00 per month. Which is what the bankruptcy attorney said put us over the edge. He can’t quit or we would not be able to pay the bills. We have 2 children in the home, both school age. Our credit score is already shot because of our debt to income ratio. We pay Bay View $1175.00 per month. They take $953.49 out as a retainer fee for 10 months. Which is 10% of our debt.
We signed with Bay View Law Group. They gave us a plan to get out of debt in 48 months. We were told to stop paying our bills and once our money accumulated in our account they would begin settling our debt. We have creditors calling all the time. We got an offer in the mail from one creditor stating we could pay half of our debt, but of course we don’t have the money to do that. I spoke with Bay View a couple of times and everytime I get something in the mail from a creditor I send it to them. I am just concerned that this may not work out and 4 years from now we will be stuck owing money and no good credit. What should we do? I don’t know how to get out of this mess, should we trust that we did the right thing?
Interesting situation. In a case like this I prefer that consumers attempt to work it out with the debt relief company first. I actually include that step in my process How to Get Out of a Debt Relief Program and Get a Big Refund.
Your concerns are reasonable and actually have not as much to do with Bay View Law Group directly as the consequences that can occur on any extended payment debt settlement program where the initial money is taken as fees and not used to begin to make offers quickly.
Your creditors have the right to enforce the contract you signed when you borrowed the money. This might include suing you, getting a judgment, placing a lien against any property or getting a wage garnishment. Communications from creditors should not be taken lightly or ignored. It can lead to serious consequences.
Any reasonable company or advisor should not be threatened or concerned if you seek advice or a second opinion elsewhere. So in that light I would suggest that you contact a different bankruptcy attorney. While you might have to pay back 100% of the debt in bankruptcy, at this point you are delinquent on your debt and a candidate to be sued, especially if you are not going to resolve some of these debts for years.
Bankruptcy would give you the protection of stopping any potential lawsuits and allowing you to repay your debt in accordance with the formula the court allows. I don’t think it harms either you or Bay View Law Group for you to get a second opinion from a different bankruptcy attorney about your situation. The first one sounds like they really dropped the ball if they didn’t bother to call you back.