Debt settlement

April 17th, 2009 by Questions

I am a 54 yr.old widow of 16 yrs.. I live on a widows pension from the federal superannuation group, as well as a small CPP pension from my husband. The total of both is $1357. mos. total. I have been unemployed now for 1.5 yrs. I am paying several contract bills per month, that eat up my pension. I am living with a relative for this whole time period, because I can not pay rent. I can hardly pay for food.
I have been served a letter from a lawyers firm, regarding an outstanding amount due from a credit card company.
I can not pay off the $7,400. due at this time. I do not want to go bankrupt, nor
can I afford this, nor a credit settlement.
Is it possible to have a debt. settlement at this late stage of a law suit in progress.
I am proposing to pay some of the interest now for 6 mos.. I need more time to look for work, and get on my feet.
The law firm wants to take me to court.
What can I do to prevent this action in the near future?

Posted from: Ontario


One Response to “Debt settlement”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The best way to accomplish this would be through a consumer proposal. The consumer proposal is a court sanctioned way to negotiate a settlement with your creditors. With the court sanctioning also comes court protection that will prevent the credit card company from continuing with the lawsuit. While you can try to negotiate directly, when a lawsuit is in process the court protection is essential to being able to arrive at a reasonable point. So the best thing for you is to contact a local trustee to discuss how a proposal can help deal with this predicament.

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