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JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience:  Attorney in the practice of Bankruptcy Law since 1996
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After a house fire and 2 surgeries, my credit cards were maxed

Customer Question

After a house fire and 2 surgeries, my credit cards were maxed and I found I couldn't make the minimum payments. I stupidly signed with a debt settlement company and have since learned that I can be sued even though I'm working with this company. I'd like to break my contract with them and recoup some of the money that has been transferred the past few months into a bank account that was set up for the debt settlement company to access their fees and for me to start accumulating enough money for the eventual pay off of my creditors. I can write to the bank and cancel any future electronic transfers, close the account and get the balance refunded. Can you advise me how to go about getting out of the contract with these debt settlement people? I'd appreciate any help you can offer.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  JoeLawyer replied 7 years ago.
Hi musicmare.

I'm sorry to hear about your financial issues. I have had several clients end their agreements with debt settlement companies, and most got money back, but whether or not they got all of their money back, or just the amount left over after the debt settlement company deducted its fees, depended on the contracts.

If your contract says they get paid their fees even if you decide to cancel using their services, etc, then you may not get all your money back.

I cannot give you legal advice online, but my clients typically contacted the debt settlement company and advised them that they decided to cancel services, and the companies sent money back, sometimes the whole amount, and sometimes the remaining amount after fees were deducted.

I hate to give you a blurry answer, but you will really need to look at the contract to know if you can get all your money back. But, I have not seen a contract yet that requires the customer to continue to use their services, so I would guess that your contract allows you to cancel, but the issue of how much money you get back is something you will need to look into.

I hope this helps and a positive feedback is always appreciated if this was useful to you.

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