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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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I answered 6 summons and have been scheduled a court date to

Customer Question

I answered 6 summons and have been scheduled a court date to see what offer I can get for credit card debts owed. Can I just go ahead and claim bankruptcy beforehand?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  JoeLawyer replied 8 years ago.

If they offered you 20% off, that is the same as saying they will settle for 80% of the balances. However, often one can settle credit cards for more like 40% of the balances rather than 80%.

Also, one can file bankruptcy once collection lawsuits have been filed and normally still discharge those credit cards.

Finally, it might be a good idea to get a refund from Halo since they apparently did not settle your credit cards and thus should still have your money in escrow.

Many bankruptcy attorneys offer free consultations, so it can't hurt to at least talk to one to see what they can do for you. I suggest you consult with a bankruptcy attorney in your area before any of the scheduled court dates. A letter from your bankruptcy attorney may also prompt Halo to refund your money a little quicker if they seem unwilling to do so.

You can find some local bankruptcy attorneys by going here:^Attorneys^Bankruptcy^&RC=1&CTS=Bankruptcy+Attorneys&MCBP=true

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

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JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience: Attorney in the practice of Bankruptcy Law since 1996
JoeLawyer and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
Relist: I still need help.
I paid Halo Debt Solutions 2000.00 out of Texas to negotiate my credit cards. I was told by Halo to discontinue payments on the credit cards and they would take care of everything. They did nothing.

Believing all was good and paying Halo as I was told to do...1 1/2 years later I receive 6 summons and a court date of which I answered each and now find myself scheduled to appear in court in two months to come up with a way to pay off these debts via a Law Firm representing the creditors.

I was duped with Halo Debt solutions into believing they were taking care of my debt and now find I am owing double the amount due to interest and nonpayment fees. I essentially incurred more debt due to fraud on Halo Debt Solutions Part.

The lawyer representing the creditors does not care and is willing to negotiate 20 percent off for each card which is inflated with interest and late fees. In another words...still much more than when I began. I guess I have another question and will gladly pay you...but is 20 percent the going rate? I thought negotiations meant much more, like around 40 to 60 percent of which Halo promised?

I am just simply devastated and was wondering if I can simply go for bankruptcy (Note I do have a previous Chap. 7 dated: 5/1/2001). But wonder if the system has gone too far for me to do this? I tried to do the right thing and in the process find myself owing so very much money I cannot pay.

What about Halo Debt Solutions? Do I have any recourse? Also, If I am obligated to attend court, should it be before a judge or jury? I would think the jury would understand that I was taken? Sorry just confused and frustrated.

Your help is greatly appreciated.

Expert:  BKlaw Attorney replied 8 years ago.
You would not be able to file until May 2009 so if you can stall the cases until then you can file and get rid of the casesand the debts