I recently had my pay cut at my job by 15%, and up to that point my family and I had already been living pretty much paycheck to paycheck. My wife had graduated from college with a bachelors degree, graduating top in her class. However, in 3 years since graduating, she has still not been able to find steady work (2 freelance jobs only), and on top of that we have incurred about $140K in student loans (interest included), plus we have about $55K in additional unsecured debt.
So back in September of 2010, I was contacted by someone from Legal Helpers Debt Resolution and after much discussion back and forth (and resistance from my wife) I was convinced that they would be able to help us with at least helping to settle our $55k debt in 4 years. Naturally one of my major concerns was avoiding any lawsuits, which they promptly assured me would be “VERY, highly unlikely.” Well, boy were they wrong (or deceitful, I should say). After 6 months in the p rogram, and paying over $700/month for their “legal representation,” I am now being sued by 3 of my creditors. I was able to answer each one, though one of the cases is already scheduled for court in mid-June. This situation, naturally, has put me in a terrible panic.
My question is: Though I have contacted a bankruptcy attorney, I’m rather nervous about this procedure. For one thing I don’t want to risk losing any of our assets, such as home, autos, computers, etc. And all of the forms that I have read to start the preparations scare the heck out of me with warnings of any assets not revealed can lead to imprisonment, etc..
Having said this, and after having already incurred my creditors wrath with litigation against me, would it be a waste of time for me to contact the 3 who are suing me and seeing if we can come to an amicable way to settle this to avoid any judgements and court proceedings?
If they know that I’m considering bankruptcy, is there a better chance that they will be willing to negotiate directly with me? I am very depressed about this, and I wish I’d never heard of Legal helpers, and worst of all I went forward with this despite my wife’s warnings. So things at home are not too great to say the least.
Any advice you can give would be greatly appreciated. (By the way, I did take your advice and followed your procedures for writing LHDR and asking for a full refund. I sent the letter Monday by certified mail, and I’ve been tracking it, so it should arrive today. Thanks for the advice- hoping for the refund, but at least I’m stopping the monthly payments for services that were never rendered.)
I’m currently backed-up on answering questions so I’m posting some of the questions here for you to help answer.
This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.