Legal Question in Credit and Debt Law in Illinois

I was forced to take early retirement 2/09 and enlisted the help of a financial agency to negotiate my debts (1st & 2nd mtg and CC's). After a year it became apparent to me that they might not be out for my best interests. I got my 1st mtg and my CC's settled on my own. When I contacted my 2nd mtg the offer I was told was on the table didn't even exist. I did fill out paperwork for a modification which they said was being offered. I called a few weeks later and was told it was under review. I called again a few weeks later and was told because I had not made any payments since filling out paperwork it had been charged off and turned over to attorneys. I was never told or asked to start making payments and I was never informed in a letter that this was being turned over to an attorney. Also the name and phone number of the attorney they gave me to contact was also wrong. I'm 60 years old, have not been able to find work (except for the holidays) and have no savings. All I have is my retirement fund. What legal outcome can I expect?


Asked on 12/02/10, 3:32 pm

1 Answer from Attorneys
Joseph Michelotti Michelotti & Associates, Ltd.

The 2nd can't foreclose unless they pay off the first. You wasted money paying off the credit cards. You can get the 2nd removed by filing a chapter 13 bankruptcy.

Other than that the 2nd can sue you and get a judgment against you, but they cant collect against your retirement monies. You could also offer them a low payoff (10 cents on the dollar or something like that).

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Answered on 12/07/10, 3:45 pm


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