The Good and the Bad

One of the largest programs we’ve enrolled into the Provanta Debt Settlement Program belongs to a retired couple who joined Provanta a little over a year and a half ago.  They enrolled with over $240,000 of unsecured credit card debt on over 10 accounts.   

The positive update on their program is that we have settled 5 accounts for them so far.  The total original claim on these accounts was $125,000 and the total current claim at the time of settlement was $148,000.  We settled the accounts for total of $48,000.  The clients have received a gross savings of $100,000.

The less positive update on their program is that they just received a summons from one of their creditors.  The balance on the account is $10,000 (one of our client’s smallest accounts) and the creditor has refused to settle.  In order to try to prevent further legal action we contacted the client to see if they could provide additional funds to pay the balance in full (something we do only in extreme situations).  Unfortunately, they could not.    

Our clients have always been aware that litigation was a possibility and they accept their situation and our services for what it is.  They understand that we cannot stop litigation but we can give their creditors information about their financial hardship to try to deter them from choosing litigation.  Since they don’t have the money to pay this particular creditor they’ve asked us to focus our efforts on the other creditors who have not pursued legal action.  They understand litigation may continue and even possibly turn a judgment, but at this point, there is nothing the clients can do about it and they plan on dealing with it if it actually happens.

We agree with the client’s decision and assured them that even while we work on the other accounts, we will stay in touch with this particular creditor.  They may come around eventually and want to settle in the future because from our experience even legal accounts can be settled.

(Ref. 1507)

Technorati Tags: debt settlement, debt collection lawsuit, client stories, financial hardship, debt forgiveness