My Settlement Company is Not Working Out. Need to Resolve Credit Card Debts Quickly Due to Yearly Employment Disclosures
Hi Michael
Sure wish I had stumbled onto you sooner. I have been working with a debt settlement company but am considering withdrawing from the program. I received a summons and immediately notified them. I was told they were taking care of it but they didn't even assign an attorney until after the court date. meanwhile, i received a 2nd summons. i have 3 accounts in the program. the 2 i have received summons for are AMEX and CITI. I haven't heard a peep from the the 3rd, BoA. The attorney I contacted suggested i work directly him to.... (edited)
Since no one appeared, the lawyer said a judgment was probably entered against me but seems confident we can still settle.
Assuming I can settle...I complete an annual disclosure statement with my employer. I am anxious to undertsand if/how
—CJ
The above reader question was submitted during the CRN site framework changes last month. I reached out via email to the reader in order to assist. Ultimately we consulted over the phone as well. I am only now getting back to publishing the exchange we had. CJ agreed to update this page with the progress as time permits. This reader’s situation is a bit fluid, so I have changed or edited out any identifiers (debt settlement company that was hired, other) until the situation is resolved.
Hi CJ,
I normally answer question submissions directly on the CRN site. The site is currently in the middle of a transition to a different framework. The tech manager on the transition suggested I not publish any new content.
I am emailing you so that you do not feel as though the below questions were left hanging. If you do not mind waiting a couple of days for the published answer, I will get it up on the site as soon as possible. If you were hoping to get a more immediate response, I am okay with giving you my feedback over the phone.
Let me know in reply, or feel free to call me tomorrow at the number below.
Kind Regards,
Hi Michael
I can’t tell you how much I appreciate your email. I pay pretty high fees to (edited to read debt settlement firm) and they aren’t as responsive. I can wait a few days. Is there any further detail I can provide to help you advise me?
I have a six figure income but had nearly a six figure divorce. I divorced a dead beat but he still fought me for custody. I won. I have full, sole custody but it came at a hefty price. Plus I had to pay him 2 years of alimony.
I am embarrassed by my situation and really want to be responsible.
Thanks for whatever advice u can provide.
Thanks
CJ
Hi CJ,
I can work with your questions through email until the new framework for the site is up.
Regarding your initial question about compromising and settling with a creditor and its affect on employment:
Is the annual disclosure completed at the end of a calendar year, or date of hire anniversary, or other?
Do you carry a series 5 or 7 license for financial services?
Who was the settlement company you hired?
What state do you live in?
What is the name of the debt collection attorney or law firm that filed the lawsuit on the Citi and Amex accounts?
Were you contacted by debt collectors other than the attorney suing a month or two prior to the lawsuits? If so, what were the names of the debt collectors?
Which account is the one with the missed court date and what is probably a default judgment?
What is happening currently on the other account you were sued on?
What are the balances owed currently on the Amex, Citi and Bank of America accounts?
Who were you last contacted by on the BofA account?
How much money do you have on hand now, or that you can access in a short period of time, that will be used to settle the accounts?
If you can answer the above questions I will be able to give you more direct feedback.
CJ Reply
Is the annual disclosure completed at the end of a calendar year, or date of hire anniversary, or other?
Completed at the end of every calendar year
Do you carry a series 5 or 7 license for financial services?
I carry a 3 and a 31 (with hopes of obtaining a 7 and may need to obtain a 99)
Who was the settlement company you hired?
(edited to read debt settlement company)
What state do you live in?
(edited to read state of confusion)
What is the name of the debt collection attorney or law firm that filed the lawsuit on the Citi and Amex accounts?
Something Krasny (I can look it up) for AMEX and Blitt & Gaines for CITI
Were you contacted by debt collectors other than the attorney suing a month or two prior to the lawsuits?
I was not contacted by any other debt collectors
Which account is the one with the missed court date and what is probably a default judgment?
AMEX
What is happening currently on the other account you were sued on?
Attorney recommended trying to settle for a lump sum of half.
What are the balances owed currently on the Amex, Citi and Bank of America accounts?
Amex. 16k
Citi. 18.5k
BoA. 29k
Who were you last contacted by on the BofA account?
I have not received one phone call ever. Only an email disenrolling me from online billing
How much money do you have on hand now, or that you can access in a short period of time, that will be used to settle the accounts?
By jan 31, 10k (source edited out). I could take from 401k if necessary.
About Michael Bovee
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Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
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