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Hi. I live in the state of Nebraska. I have been working with a debt settlement company which now I know was the wrong thing to do. I just received a summons from a law firm. The debt settlement company is not returning any of my calls now. I do not know what to do. Would a law firm allow me to set up a payment plan? Is it too late? What should I do? Can they come after my wages and/or house? I would appreciate any advice.
Hi Ann:
I can't answer with certainty because I don't know how far along you are in the collection process or how they will react. I will say that most collection agencies - which is probably what this "law firm" is - are more interested in getting money than anything else. Most are open to payment plans early in the process. You should try and negotiate some type of agreement that it will not be reported to the credit bureaus if you maintain payments as agreed.
Wages can be garnished in Nebraska. Up to 25% or 15% if head of family. They can only do this after a judgement in place. Personal property and real estate are also at risk with some exemptions. A good link is here:
http://www.bcsalliance.com/debt1_nebraska.html
if you are primarily concerned about garnishment above all else, you should contact them and enter into a settlement arrangement you can keep. The main thing is to NOT let a judgement get in place. Once that is done, your options are reduced with the only real (100%) protection is bankruptcy at that point.
Your alternative is to aggressively fight this through credit repair and counter-suit techniques. They are often highly successful, but really difficult to get into in a forum like this and without review of the documents and history.
My guess is they will be happy to accept terms. If they don't, you need to look at really fighting it or filing bankruptcy before a court-ordered judgement is put into place.
Good luck - you have options. It's not the end of the world.
Regan
p.s. As you said, you are another example of why I am not a fan of debt settlement companies!
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA - University of Minnesota
Past/Present Clients
(private)
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