I went into debt trying to keep my business afloat. I payed all my distributors and manufactures for three years as the economy slipped..I wanted to keep good relations with them and used credit cards to keep up when my expenses were more than my positive cash flow..
Long story short, my wife and I got sold by LHDR 🙁
I have paid them over 15,517.00 from 7/28/2010 to present.
they have settled 2650.00 of my debt in this time.
I have been sued for over 25k at present time. All they say is we told you this can happen and we can not adjust or rate on the contract you signed…
My questions are many. #1. they charged me based on a percentage of my debt.. Why cant they adjust there fees to reflect the new amount of debt…they wont be handling the 25k i already have now been sued on.
#2. My payment schedule has me paying them 1050.00 a month for the next 7 months (this is just their compensation) my total payments are 1500.00. They will not lower my payment so i can make the payments on the judgments against me. Do i give up with LHDR?
You ask some very good questions and I’d love for you to direct them to Legal Helpers Debt Resolution and post their response in the comments below.
I think most people would agree on the following facts:
- You paid a percentage of your debt when you enrolled in the LHDR program but you no longer have all that debt and it seems you feel LHDR did not provide you with a reasonable benefit for the money you paid for help with that debt. yet they are unwilling to give you a refund for that amount.
- It appears your underlying situation has not changed and your financial situation has not improved. It seem unlikely you’ll be able to accumulate more case prior to more suits. Is that a fair assessment?
- LHDR will apparently not give you any sort of allowance or adjustment to your payment or fees based on your situation. They appear to be placing their needs ahead of your needs as their client. Is that a fair assessment from your point of view?
So whose best interests is this company looking out for?
You owe it to yourself to not make a rash decision about what to do but you do need to examine some other options that might be more appropriate in your situation.
Consider this, you might be a good candidate for bankruptcy, a legal fresh start, and most people that do file are able to discharge their debt completely in just a few months. In that case it would have saved you $12,000 of the money you already invested and you would have been debt free for the past six months; already rebuilding your credit. Compare that to where you are right now.
I’m going to give you some homework. I want you to contact a local bankruptcy attorney and talk to them about your situation. Don’t talk to them with the intention of filing bankruptcy or even agree to file bankruptcy when you first talk to them. Just find out what bankruptcy would mean for you and report back in the comments.
I’ll get you headed in the right direction but first we need some additional information. Sound reasonable?