How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JoeLawyer Your Own Question
JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience:  Attorney in the practice of Bankruptcy Law since 1996
Type Your Bankruptcy Law Question Here...
JoeLawyer is online now
A new question is answered every 9 seconds

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: 8 years ago.
Category: Bankruptcy Law
Expert:  JoeLawyer replied 8 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.

LEGAL NOTICE: I am only licensed to practice law in certain state(s) and I cannot give legal advice to someone who does not reside in a state in which I am licensed, nor shall anything I say in the above answer or elsewhere on this site be deemed legal advice, even to someone who resides in a state in which I am licensed. Fees I receive for answering questions are paid for information, not for legal advice. This forum is designed to provide general information only, and information herein is not warranted to be correct or applicable in any way since laws may have been misinterpreted herein, since laws change from time to time, and since the impact of those laws on any particular situation varies. The information presented in this site shall not be construed to be formal legal advice nor the formation of an attorney-client relationship. Persons accessing this response are encouraged to seek independent legal counsel in their jurisdiction for guidance regarding their individual circumstances. Do not take any action or inaction based on information presented herein since it is informational and may not be accurate or applicable to you; it merely attempts to give you a basis of knowledge to help you formulate questions to ask a legal or other professional in a face-to-face meeting in your jurisdiction. Joseph Ross does not hold himself out to be a specialist or expert in any area, regardless of assertions made by any third party, and any implication of being an expert or specialist herein is made in error. I hope the information presented above is useful to you. Answer above is (c) Joseph Ross. All rights reserved.