debt settlement

November 8th, 2009 by Questions

I have credit card and line of credit debt totaling $40000. I have a job. I heard different things about debt settlements is it like consumer proposal affect your credit rating R7 or debt settlement company pay on my behalf to creditors after settlement and than I pay debt settlement company over 36 months? Or I stop paying to creditors after retaining debit settlement company for 36 months and deposit money with debit settlement company for 36 months. What will be my credit rating which R after I retain a debt settlement company. ( in scenario I stop paying to creditors for 36 months my credit rating will be R7 ).

Posted from: Ontario

Questions

One Response to “debt settlement”


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

Usually what happens is that the debt settlment company will take payment from you and then re-distribute it to your unsecured creditors.

As for your credit rating, as a general rule you will have the R7 that is listed for 3 yreas from the completion of a debt settlment program.

However, the challenge with answering these types of questions is that there are many forms and types of debt settlement and the specific practicies and procedures can vary substantially depending on which type we are looking at.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)