Legal Question in Credit and Debt Law in California

debt management

im considering using a company named ''cleardebtresults''. they say my first step is to completely avoid all my creditors, not to pay them for 3 months. no contact. after that CDR will deal with them and i make payments that cut my debt in half. after 3 years, debt is 0. 2 more years and credit is excellent due to 0 debt. does this make sense? is this legal? are there any negative concequences?


Asked on 8/28/07, 1:53 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: debt management

What do you know about this company? Does it make sense to you that you are supposed to ignore your creditors for three months? Lots of credit repair or debt consolidation "companies" are scams. Do lots more research and read any contracts you are asked to sign.

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Answered on 8/28/07, 2:32 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: debt management

I echo Mr. Stone's advice. Do not jump in blindly and conceivably make your credit worse. I have had clients who relied on other debt "relief" agencies that took substantial sums of their money and never paid the creditors. Be VERY careful.

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Answered on 8/28/07, 5:42 pm


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