Divorce Settlement

May 16th, 2012 by Questions

Good evening,

I have been separated from my husband and working on a divorce settlement now for five years. During this time, I incured approximately $15,000.00 of credit card debt. I was paying minimum payments but then he stopped paying support and lawyers fees were eating was left in my budget.
We have finally reached a divorce settlement and I am now in the position to pay my creditors. The two credit cards have gone to creditors and I am not sure how to proceed. I have called a debt management firm and they wanted $2000.00 up front and I felt a red flag. If I settle my debt at a lower amount or pay the amount in full will it still be on my credit report for 7 years? I wish to pruchase a home but with bad credit I am afraid this will not happen. This is so overwhelming. I don’t know where to turn. I want to pay back my debt but I don’t even know where to start.
Thank you in advance for your time and any advice you can offer.

Posted from: Ontario


One Response to “Divorce Settlement”

, A licensed trustee said:

Your instincts were correct – if they want an upfront fee they may not be legitimate. If you only have 2 cards and yuo have the ability to pay the debt in full then this won’t be complictaed. Why don’t you ask the lawyer that worked on your divorce what they might charge to sort this out. Likely you can settle for less than what you owe, if you ask…

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