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Fast Debt Solution Went Out of Business But Took Their Fees.

my problems started about 5-years ago.the first thing is i lost my job,then my wife was forced into retirement with a lump sum of about $12,000.00 before taxes.

Next was Hurricane Rita that total destroyed our Home.Insurance covered the rest of the mortgage which left us with very little.On the money we received we had the cleanup of trees, debris and get the place ready for rebuilding.

BY this time i was $25.000.00 in credit card debt.Well i hooked up with Fast Debt Solution in Texas.We had made an agreement in which i would deposit $400.00 per month in a special account to negotiate with the Credit Card Co’s. Of course i had to pay them their fees up front which was some $3500.00 at $145.00 per month then the full $400.00 per month was deposited every month to deal with the creditors .

Some 3 months ago Fast Debt Solutions went out of business. I was told that some law firm in Texas was taking over their customers but wanted a fee to hand le the balance which i said no.I felt Fast Debt Solution did not live up to their agreement,collected their fees and then wanted me to pay some more fees to this attorney.

Any way i was blessed that i had only 2-creditors to deal with and we have decided on a amount on 1 which will be paid off in August.Then i have 1-more to deal with.I didn’t mention the fact that my wife had a major Stroke 2-1/2 yrs ago.we are both in our 70’s and now on fixed income S S.I know i must sound like a broken record,but i guess what i want to ask you is when a bank,credit card co writes off a debt what are my options and do you think i could get some of my fees back from Fast Debt Solutions.

Is there any way something could be done?

should i try to negotiate with a creditor who has bought the note,but the bank has wrote it off.

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.

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This is information that was submitted by a third party and not generated by or Steve Rhode.
  • Linda

    I am in a very similar position as you. I do know that if a credit card company writes off a debt, you will get a 1099-C to file with your taxes. The amount of debt forgiven will have to be claimed on your taxes for that year as income. So if they forgive, as an example $15k, then you will have to claim $15k as additional income that year.

    On the rest of your issues I really don’t have the knowledge to give you advice, but I do wish you the best of luck in your situation and remember to trust in the Lord.

  • Michael

    I am sorry to hear about your set of circumstances.

    I do not think you will get a refund of fees paid to a company that is no longer in business.

    You found success with one creditor and could likely repeat that success with the remaining account when you have the resources to work with. The fact that your creditor charged off the account and sold it to an investor of bad debts does not change much about the settlement process, or the fact that the debt is still collectable. Would it be possible for you carry the cost of the payment arrangement on the account you are paying until August while making and paying on arrangements with the other? What state are you in?

    Also, at this point in your lives and with a fixed income, perhaps bankruptcy would provide a more cost effective and immediate path to financial relief. Have you looked into bankruptcy and whether you can qualify for chapter 7 where your debts are discharged? If you have assets that the trustee would liquidate in the bankruptcy process – settlement may still be the right path.

    Best to you and your wife in your efforts and cheers to clearing the debts in 2012!

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