How does a Debt Management Plan work?

What happens if one or more of my creditors decide they don't want to wait and file a lawsuit on me? What can the negotiator do for me when that happens?

 

Why have you posted this twice? Are you trying to spam?

Most of them are ripoffs.

 

Given that there are maybe four threads started per day, a little spam might be nice.

 

When this happens with GM, President Obama steps in. Obviously whatever deals are agreed to must be agreed to seriously by all creditors. How likely is this without executive oversight? Dumb Bob doesn't want to guess.

 

There is no reason for you or anybody else to guess. The answer is written History's annals. The debt consolidation companies all vaporize like the morning dew when their customers get sued. They have no choice but to do that since they cannot advise or represent their customers in a court of law.

Of course, the customer's money also vaporizes until the full amount of the fees charged by the consolidation company is paid. In the meantime, the creditors whom the poor sucker thought were getting paid are sitting there impatiently tapping their fingers on their desktops waiting for the lawyer they hired to file a lawsuit on the poor sucker.

The position of the debt consolidation company is facile to understand however. They are faced with the real possibility that if they don't get theirs first the customer will default on their agreement as well and they will lose out just like the creditors have but will have little luck filing a lawsuit against their customer.

But even though I can understand their position I do think they ought to be a little more up front and honest with their customers. It is called full disclosure of all the terms and conditions. They ought to make sure the customer understands fully and completely that they cannot represent them or help them in any way in the event that they are sued. They ought to make sure the customer knows exactly what it is going to cost and the fact that they take their cut right off the top and the creditors will have to take an old cold tater and wait until they get their money and they may or may not accept getting more of the same treatment they are already taking.

I think it would be much fairer to their customers if they would take a percentage of each months payment off the top designed to eliminate the debt in a certain period of time. Suppose they were to take even as much as 30% of the top of each months payments until each debt was paid in full. Out of each hundred the consolidator takes $30 and the creditor gets $70. Then the customer would get a better shake and so would the creditors. Maybe they would be much less likely to sue that way.

If it don't operate something like that then I think it is little more than a scam.

 

That's one way of looking at it. Can't say as I disagree with you all that much either. There are, of course, pros and cons depending on one's point of view. While you or I might have one or more thoughts on the matter, the only point of view that counts is that of the moderators. If they don't want any spam then they have the right to control that. They also have the right to agree with posters or disagree with them.

But then, I didn't really have to tell you that, did I?