Ask The Get Out of Debt Experts Debt Settlement

Is it Time to Throw in the Towel and Declare Bankruptcy? – Noelle

“Dear Steve,

I suffered under the influence of a debt settlement company over 18 months ago. Debt Settlement Professionals out of Florida. I challenged them, contacted BBB and received a refund… thanks to your help!

I have been working on trying to fix what has happened to my credit due to this issue.

I was offered an offer on one of my accounts to settle. I mailed in my check, it was cashed and that was 6 months ago. I was just called today by a debt collector who is seeking payment..

Here is issue. How can I avoid having the rest of this debt be paid? I made good on my account, was told verbally on the phone it was taken care of. I spoke to the creditor tonight.

Now this was the answer. Due to the fact you MAILED in the money and did not set up an automatic withdrawl payment plan on this account we can NOT honor your payment. It was credited and you still owe the remainder.

I don’t have a leg to stand on. Is it time to declare BK?


Dear Noelle,

Yea, never send in a settlement payment unless you get it in writing first. Some collectors are just flat out liars.

I’d love to tell you there is a likely possibility of a happy outcome but the reality is that if they are not going to honor their previous commitment and there is no written record of the offer and acceptance, then you are in a bad place.

At this point I’d suggest you get two opinions. First, contact one of the AACC settlement companies that puts consumers first and speak to a local bankruptcy attorney about your situation. Then we can make a better decision about how to move forward.

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 Damon Day.

Please post your responses and follow-up messages to me on this in the comments section below.


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.


  • I have spoken to several attys. Best option for us.. BK chapter 13. I can not make the payments that the creditors are charging, and the fact that I have been out right lied too.. does not make me feel comfortable dealing with them anymore.

    Creditors do not care if you don’t have food on the table, a car to work in or a roof over your head.

    I lost my higher paying job due to department closure a few years ago. Despite being able to work still, my income has ben seriously cut. This would explain the current situation I am in. People are quick to judge.. a believe me a 500 less a month income or slight more in my case.. has made this bit of difference.


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