For those who viewed my post referencing my bankruptcy consultation; Again, the attorney pretty much so poo pooed settlement companies stating an attorney can negotiate settlement but most creditors / collectors want a huge up front amount or full settlement. Settlement damages your credit for 8 years, bankruptcy 10. Bankruptcy eliminates your debt, settlement only reduces it. Other than pride, what would be ones motivation ? Because I try to be responsible and accountable I would like to do the honorable thing and at least pay the principle on my accounts but let's just say the creditors / collectors have been less than helpful in establishing any productive dialogue. A settlement consideration would require someone who takes immediate action and doesn't require a bunch of money up front. A contingency if you will. If we don't get a settlement agreement, you don't pay. I haven't seen that offered anywhere yet. I would also require they immediately begin representing me in contacting and negotiating with creditors / collectors. Again, I haven't seen that either. Sounds like fraud to me with no guarantees or actions up front ( other than collecting their fees off the top as you deposit into a trust account). Anyone have an argument ?
To Add : Settlement does not stop garnishments or lawsuits. Bankruptcy stops everything until it's conclusion. In many cases one who has declared bankruptcy is able to establish credit within a very short period of time. Lawyer states I can begin looking to purchase a home within 3 years. A car within a year.
