Legal Question in Credit and Debt Law in Massachusetts

Re: Debt settlement

An incredible... maybe. What debts are you consolidating or restructuring; is the debt settlement company a legitimate company? Will it close up after taking your money and not paying any bills? What will happen to your credit rating? Does your home have any equity? Will the lenders want to attach that equity?

Look into all of these before using a debt company.

Re: Debt settlement

Be very, very careful of "debt settlement companies." I have represented a number of people who have gone to these outfits. They made their monthly payments, assumed they were doing the right thing, but the debt settlment companies did nothing. These consumers ended up in bankruptcy - which is what they were attempting to avoid. I recommend contacting a bankruptcy attorney and seeing if this is the best option for you - and have your paperwork from this debt settlement company - experienced bankruptcy attorneys will know which debt settlement companies to stay away from.

Re: Debt settlement

Your home is probably safe. If you filed for the homestead exemption when you bought your house (and most mortgage lenders insist upon this, and its usually part of standard closing documents), your house cannot be reached by creditors up to the first $300,000 in value. If the debt is less than $300k, your home is almost certainly safe.

Even if your debt was more than 300k, creditors would likely be behind certain previous mortgages on the home (mortgage lenders and perhaps others). So, creditors could only reach your actual equity in the home above and beyond the first $300k in value.