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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My daughter signed up for a Debt settlement program. Recently

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My daughter signed up for a Debt settlement program. Recently she received a court letter asking her to come to court because her creditors are demanding payment of her balances which amount to around $6000. Prior to this, her tax refund was frozen by the bank and forwarded to the creditors who demanded it.
She paid the Debt Settlement group $440 a month on the agreement that part of the payment will be forwarded to the creditors. It now appears that the Debt Settlement people did not forward any of the payments to the parties involved. There is a hearing scheduled for this case next week, and my daughter does not know what to do. She does not have the money to pay all her creditors at once.

Please advise. Thanks

WebLaw :

*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

WebLaw :

What State does your daughter reside in?

Ellen and 3 other Bankruptcy Law Specialists are ready to help you
What State does your daughter reside in?
Customer: replied 5 years ago.
Thanks for the reply. Sorry for the delay of my response. Please advise as to what she should do next. Her hearing is coming up on the 19th of this month. Should I ask her to get a lawyer to go with h er?
Can you please tell me what State your daughter resides in
Customer: replied 5 years ago.
Thanks for your reply. My daughter lives with me in New York City.
Since your daughter is unable to pay the debt, she may want to consider a chapter 7 bankruptcy. I will explain.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of her unsecured debt such as credit cards, medical bills, judgments and personal loans. It would be an opportunity for a fresh financial start. A Chapter 7 requires that she surrender assets, if any, that exceed her exemption. However if she does not have any nonexempt assets, she would lose only your debts

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that your daughter repay some of her unsecured credit card debt over a 3 -5 year period. However, she may retain assets that exceed her exemption.

Here are the exemptions for New York:

I think this is what you wanted to know. Please let me know if I have answered your question
Customer: replied 5 years ago.
Thank you so very much! You deserve a 5 star for your response
Thank you so much– I appreciate your feedback
Customer: replied 5 years ago.
She is scheduled to go to a hearing tomorrow, and for another creditor on the 21st. What kind of questions should she anticipate so as she could be ready to answer them?
The site requires that you open a new page for a new question. That said, briefly the creditor would typically ask questions to determine what assets your daughter has available for them to attach in payment of the debt owed
Ellen and 3 other Bankruptcy Law Specialists are ready to help you