What can we do if e are working with a debt management team and they have not made our payments to our creditors for the last 2 months?

have tried calling them, left messages and emailed them. I have not received any responses and have been trying for over three weeks! I’m not sure what to do now as our creditors are calling us. Can you give me any advice on what to do? We are trying to decide if we should declare bankruptcy or not.

Asked on September 25, 2014 under Bankruptcy Law, Wyoming

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Whether you  need to file for bankruptcy or not is a complex question: it depends on the type and amount of assets you have, your income and the type of income you get (e.g. is any of it a pension? social security? etc.), and the amount and type of debt. You are advised to consult with bankruptcy attorney in detail about your situation to decide on whether bankruptcy is the right choice--and if so, what kind of bankruptcy (e.g. chapter 7 or chapter 13).

However, if the debt managment team has taken your money and not made payments to your creditor, then either they were negligent (careless); or they were criminal (they stole your  money); or they have gone out of business--or some combination of  the three. First, try to go to their office in person, if it's not too  far away--it's harder to ignore someone standing in your door, and this will let you see if they are in business or not.

After that, unless they are still in business and *immediately* take steps to help and/or repay you (i.e. this was some sort of error or oversight, and they promptly fix it), you should sue them to get your money back--and possibly also report them to the police, if you believe they may have stolen your money.


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