My wife and I have been contacted by The State Law Group. I have seen that you have been asked about this organization in the past with regards to loan modification. As with many Americans, times have been tough in our household and as a result we have accumulated a significant amount of debt that I fear we will never be able to pay off.
What the states law group is offering is this. They have offered to enter into negotiations with our creditors to settle for lower payouts. What we would do is essentially, is purposely defaulting (not paying) on our payments to our creditors and thus have our accounts be sent to collections.
At this point a State Law Group lawyer enters negotiations and negotiates to settle a much smaller amount. They threaten bankruptcy in my opinion. That’s their part. They have said they will establish an FDIC trust with us paying into that trust apx half of what we are currently paying out per month to our creditors. From that trust once a particular creditor has “settled” for a lower payout they would use the money from trust. In summary they state we will only pay apx 2/3 of our debt at 0% interest off in 36 months. We have already payed around $3500 out of pocket to the State Law Group.
I am very skeptical of this whole idea but we are out of ideas. Too good to be true? What questions should we be asking?? Thanks for anything you may offer.