Legal Question in Credit and Debt Law in Pennsylvania
hello I am senior citizen who is in credit card debt. We are also trying to sell our home. I need to reduce the amount of debt. Can't make my payments and in trouble. I was told not to declare bankruptcy as it will hurt me when trying to sell my house or buy/rent another. Was told to try to reduce amount of debt in the hopes of paying it off. 25 grand in debt--very scary--no income. Should I try to contact creditors and ask them to reduce my debt? Would that hurt my credit? Or should I pay someone to create a letter and mail to ALL my creditors for me? How much would that be? If I can do myself would probably be better but what should I say and how do I do it? Call? thanks much. I am in deep trouble. Tony Yost ps my daughter emailed question before so it was her and not me. ok.
1 Answer from Attorneys
Your debt does not sound all that bad. Nothing is so bad that you cannot get out of it. It depends on whether you should do this yourself or not or how much money you have. What your creditor is willing to accept will depend on if the debt is in litigation and wheter you have the funds for a lump sum settlement.
I work for a debt settlement company and handle PA clients. They do have programs for seniors. If you are interested, check out their website: http://www.nationallegalsystems.com.
I also handle debt settlement on my own for people who do not qualify for the program. My fees will depend on the number of debts that you have. I charge reasonable sliding scale amounts (my fees are regularly $150 per hour) but try to limit the work to keep costs low. There are services that the debt settlement company provides above this and their fees are associated with that. I do not provide those services so I do not charge fees for that.
Before you settle a debt, please feel free to contact me or another attorney in your area. Many attorneys offer free consults. It will only be learning about your situation that we can give you the best advice about whether you can or should file bankruptcy or try to resolve your debts.
Rule of thumb with debt collectors - always deal in writing with them and get the terms of any deal in writing before you pay them funds. Lump sum settlements are better than settlements where you pay over time.
Start at 50%, although some creditors will do settlements as low as 15% depending on your situation. Why did you get into this mess? If you have a hardship such as medical illness or job loss, that can help you get a better settlement lower than 50% if you have the funds. If a case has gone to litigation, some creditors have a policy that they will not take less than 80% of the debt.
How old are you? Are you on Social Security? If so, your income might be exempt and there is no wage garnishment in PA if any creditors get ajudgment. The creditors can still levy on your bank account on sums over $300. I have suggestions for dealing with that too.
Are you going to get any money after you sell the house? If so, we can settle your debts at that time once you have the funds.
Feel free to contact me about this matter if you are interested.
Rachel Hunter
Attorney at Law
(678)-687-9693
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