Garnishment, settlement?

**SanDslnrs** · 05-25-2008, 12:31 AM

I'm in such a financial hardship right now, I can't even think straight. I've been feeling sick all week. All my credit cards are in collections, and yesterday when I got paid, I was being garnished from one collection agency. I have been working with AccuShield (debt settlement company) and have paid them for a few months now; howeve, they haven't settled anything for me, and now I got garnished. I'm so upset. I called an attorney, he said to file for bankruptcy and that'll stop the garnishment. But is it better to just let the garnishment go through? This should be paid in about 13 weeks time, and then maybe I can negotiate wth the collection agencies myself for the other bills? What should I do, the BK or let the garishment finish and settle with the others? I need help here, please... Thank you!!!

**FrugalWitch** · 05-25-2008, 12:40 AM

Hi and welcome. Personally I would do whatever is humanly possible to avoid filing bankruptcy. Sorry I haven't got any better advice to give you.

**Jamauk** · 05-25-2008, 12:43 AM

I would call AccuShield and ask them why they didn't "shield" you from this garnishment. Isn't that what they are supposed to be doing?

I wouldnt' file bankruptcy, if you can at all help it.
Hugs to you

(and welcome to the village by the way!)

**SanDslnrs** · 05-25-2008, 01:19 AM

I did call Accushield and they said a legal adviser would call me, and they asked me how much have saved up to settle with this company to remove the garnishment I know my credit is really, really bad righ now, and has een for the last few years,but will the garnishment hurt me as much as the BK? And what about my showing settlements all over my credt report? I would like to re establish my credit, but would't even know how to after this.

This is a great forum!!! I'm glad I found it, everyone seems so friendly and helpful. Thanks for the welcome!!

SAndy

**Palooka** · 05-25-2008, 01:23 AM

First things first, you need to call your debt consolidation people and have them stop/or you stop paying them. It is a pure rip off. I can only image the simple monthly payment you make to them, the intrest they collect, and do nothing about it and I am sure they promised you that they would 'take care of it, neogtiate,' and hold your money to not pay them...

I am curious how many months you have given them your money/verses just paying your minimum balance?

**SanDslnrs** · 05-25-2008, 02:18 AM

My situation is really bad. I got into this mess when I helped my older son and his wife with their financial situation. They had a small child, and another on the way, when my son got laid off work. They were on the verge of losing their home, car, and usually had not much to eat. I would help pay rent, the car,etc, and before I knew it I didn't pay my bills. I have been in collections for about 3 years now with 5 creditors. I owe about $6,000 in cc debt. I did try to make payments, but they refused to take any payments from me. Now, that I went to a settlement company, it seems too late, and I don't know how to correct any of this. I know I can't get a consolidation loan to help me with my credit, so I don't know what to do.

**Palooka** · 05-25-2008, 02:28 AM

6k seems like nothing. I know they won't work with you after the fact, but I was curious how much money you were paying monthly to your consolidation people..

How much was your minimum payment on your cc prior to this?

**SanDslnrs** · 05-25-2008, 02:38 AM

I paid the upfront fees first of $135 for 4 months and then I was to put $150 aside towards the settlemet, and then the last two months they've only taken $95 out of my account. I was told I make these payments, send them faxes of any correspondence, which I did, and then they negotiate with the collection agency one by on, and I give them the money I saved to payoff the settled amount. So I would say I've paid about $600 already to them. They told me that they settle for several people at one time so you get a lower settlement. I called them when this garnishment took place, and they said a legal counselor would call me, but no one has. Honestly, if I could get a loan of some sort to settle with the collection agencies maybe for 1/2 I could make the payments. Rght now, the garnishment is about $700 a month, but I could make it if the payment was about $300 a month, but $700, I don't know, it'll be hard. It should be for 13 weeks. Does anyone know if I should go for the BK or just let this go through and call the other collectors and try to settle with them? Would I be able to reestablish my credit with garnishment and settlement versus bk? Thanks!

**Palooka** · 05-25-2008, 02:56 AM

*gulp* I know it is late so forgive me if I don't understand.

You said 6k in credit cards? I am sure that went up with past due's and all those fees.

Now how come you were not able to make the minimum payment on your credit cards from the start that made you go to a consolidation company? You could have still tried to help your family and pay the bills too...

If you payed every month on time to the small balance you would have came out more ahead than what you are going through now.

At the high end I think maybe 150 tops going straight to your balance.

No way on BR.