Can World Law Service Settle Our Debts? – Jeff

My wife and I are $32,000 in credit card debt, plus $3000 line of credit, plus $13,000 with student loans and a mortgage of $171,000.

My wife makes about $55,000/yr. I make $8/hr at a seasonal job and not sure what my next job will be.

I am an unemployed social worker not wanting to return to this field but since my license is current in MN, it would be smart thing to do, given per hour income.

We are working with, but have not signed an agreement with World Law Services and discussing debt settlement of our $32,000, down to a possible $12,700. We have spoken to the represensitive, Cartlton Allen several times and he seems very sincere.

He did tell us about the guy who worked there and was fraudelent. Your blog does not speak highly of them, but Carlton told us the reason they are not BBB is because lawyers are not part of this, as they could be disbarbed if something happens.

The fees would total about $9300, for 54 months, based on AVERAGE settlement of 61% debt reduction. We have not checked out any of the organizations you have on your website. Any ideas for us? Sincerely, Jeff and Chris

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1 thought on “Can World Law Service Settle Our Debts? – Jeff”

  1. Jeff,

    Let’s assume that the settlement estimate of 39% is correct. Add to that the quoted fees of $9300, that amounts to another 29% of your debt. So right out of the gate, assuming the estimate is correct, you will pay roughly 68% of your debt on this program… where it stands now. I say that because if you go delinquent on your accounts, that $32,000 will go up due to interest, penalties, late fees, etc. Based on what I have seen, you can expect the accounts to grow by as much as 10-20% during this process. Let’s cut that in the middle and say they grow by 15%. Add that to the 68% we estimated before and we’re at a grand total of about 83%. And keep in mind… that is if they are able to hit their estimate of 39% settlements across the board.

    Ask yourself this, “Is saving about 17% worth the headache of going behind on all accounts… collection activity, lawsuits, damaged credit, etc?” 

    Another issue to look at is the length of the program being proposed. 54 mos is a long time for your creditors to wait around. In my experience a settlement program works best if you can accumulate enough cash, to settle all of your debts within 12-24 mos. Any longer than that and you’re just involved in a glorified chapter 13 BK… without the legal protection from creditors that the BK offers.

    And a another huge issue to be aware of is when the fees on this program would be charged. If any of the fees are charged up front, that is money that will not be going to your creditors to settle your debt, it will go into the provider’s pocket. Think about it, “do you want to pay them money in advance for debts they have not yet settled?” … What happens if your situation changes, and you have paid $9300, but still have most of your debt?  … Will they reimburse you for the debt they did not settle?

    As for World Law, I don’t know anything about them, the decision is all yours. My advice though, before you go signing up for anything, check into the other options that are out there, Speak to a credit couseling agency to see what they may be able to do, sit down with a bankruptcy attorney to see how that may work, also look into performance based debt settlement companies that may offer a program more suited to what you need.

    Good Luck!



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