“Dear Steve,
I am a graduate student in Kentucky. I have about 21,000 in credit card debt. I was/am working with a debt settlement company Vertexsoft Corporation. I learned about Vertexsoft’s bankruptcy from your website.
My question involves what to do about my relationship with Vertexsoft. I’ve paid about 2,000 dollars through NoteWorld, but Vertexsoft has not settled any of the debt. My accounts have only been recently closed due to nonpayment. I called Vertexsoft and the person I spoke to said he would do a conference call with me on Monday the 28th, and see if he could settle any debt with my creditors.
Is it possible to get my money back from Vertexsoft? What happens if I keep paying money to a bankrupt company? The guy at Vertexsoft was unclear about what would happen. I know I can cancel my NoteWorld account at any time, but I don’t know what to do. If I get the money back, should I try to settle my debt personally? Should I declare bankruptcy?
I do want to pay my debts. I paid on time for a few years, but I was unemployed and had other difficulties that led me to fall behind. I have an okay job, and I could make a fair amount of money this summer. In theory, I could pay the whole 21K in credit card debt after a couple of years. The only bills I have right now are my rent, car, phone, groceries and the debt settlement payment.
Sorry if the question is too long. I don’t know who to trust in all this. I thought that since the debt settlement company makes so much money in fees, they would be able to remain solvent.
Any advice you could give would be great.
Thanks,
Jeremiah”
Dear Jeremiah,
If you want to see how Vertexsoft is doing right now you can look at their latest operational statements they filed in their bankruptcy case.
You’ve asked some very good questions.
What’s going to happen? Well the reason the company filed for Chapter 11 bankruptcy protection is to seek protection from the court from creditors.
When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11.
In Chapter 7 the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.
Chapter 11 usually results in reorganization of the debtor’s business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may “emerge” from a Chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. Upon its confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan.
Debtors in Chapter 11 have the exclusive right to propose a plan of reorganization for a period of time (in most cases 120 days). After that time has elapsed, creditors may also propose plans. Plans must satisfy a number of criteria in order to be “confirmed” by the bankruptcy court. Among other things, creditors must vote to approve the plan of reorganization. If a plan cannot be confirmed, the court may either convert the case to a liquidation under Chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. – Source
Quite frankly it is probably too early to tell which direction this is heading.
Only you can be the best judge if the company is delivering on the promises it made when you purchased their services. If you are getting a positive feel they will deliver then you may considering sticking it out. If you want to explore DIY debt settlement then ask the resident DIY settlement expert for advice in our forum.
At the same time it would be prudent for you to find a local bankruptcy attorney and discuss your situation with them.
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
Based on what you’ve shared and your ability to pickup the ball and run with your own plan again the most logical step to take is to schedule a meeting with
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.
Do you have a question you'd like to ask me for free? Go ahead and click here.
- We Rise From the Dead Yet Again – Podcast - October 2, 2023
- Lexington Law Credit Repair Gets Hammered in Lawsuit Settlement. If You Sell Credit Repair – Wake Up! - August 28, 2023
- People That Got Scammed by Robocall Debt Relief Company Life Management Services of Orange County to Get Money Back - July 7, 2023
