Legal Question in Bankruptcy in California

Debt Reduction Credit Cards

I have recently become separated, my ex lost his job, am solely supporting my children and am buried in credit card debt i had run up just to survive paying food and utilities. Are ANY of these debt reduction companies legitimate? I want a repayment plan. Can an attorney negotiate with my creditors? I am willing to pay for this help. Is debt reduction real? Please help. Thank you. I dont want to file for bankruptcy. How can I deal with these credit card companies?


Asked on 9/27/08, 2:39 am

1 Answer from Attorneys
R.C. Lim The Law Offices of R.C. Lim

Re: Debt Reduction Credit Cards

Anyone can negotiate a debt reduction with your creditors on your behalf. There are also some legitimate companies that can do this on your behalf.

It is, however, shark-infested water. Unfortunately, even many of the so-called "non-profit" services exist solely to scalp you and take your money. And at best, they can only negotiate with certain creditors, namely credit card companies.

Most importantly, watch out for the services who hope to drive you deep into default and hold onto some of your money in the hope of negotiating on your behalf down the road. These services put your credit into worse shape than it would have been if you had filed for bankruptcy.

But, I wonder if there is some circumstance that will fix your situation right now? If you ran up debt getting to here, some debt forgiveness by itself is unlikely to fix all of your problems.

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Answered on 9/27/08, 10:10 am


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