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Lynn is Working With a Debt Settlement Company But Being Sued By Her Creditor

“Dear Steve,

I am with a debt negotiation company for over a year and i am being sued for one of my debts, the law office that represents the debt informed me that the company I am paying money to never contacted them when I faxed the letter over a month ago.

Now I have been summonsed to court and do not know what to do. I have come up with $4000.00 for a $7000.00 debt but they want $5000.00 and the summons could have been avoided if the debt company contacted them

Lynn”

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The Answer

 

Dear Lynn,

I’m so sorry that you are having to deal with all of this. It must be very stressful.

I think the first step would be for you to call the debt settlement company you are working with and speak to a human about this. It is quite possible that the letter that you faxed over was never received properly or got caught up in something else.

A good debt settlement company should be able to jump in and assist you with this matter, even at this late hour. In fact the debt settlement company may have already contacted the lawyers office even though the lawyer says they haven’t. Call the debt settlement company and ask for help and an update.

Being sued while working with a debt settlement company is a problem if you do not have a lump sum amount of money to use to settle with right now. In order to accumulate the money to settle, consumers typically pay a monthly amount to the debt negotiation company and they then save that money up until they have enough to make a reasonable settlement offer.

Whatever you do, do not ignore the summons or court date. If you don’t go to court, you will automatically lose. If you can afford a lesser amount right now, explain your situation and proposal to the judge. As in any legal matter, it is always a good idea to get legal representation, find a local attorney to help you with this matter or ask the debt settlement company for guidance and assistance.

Big Hug!

Lynn is Working With a Debt Settlement Company But Being Sued By Her Creditor
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The Answer

 

Lynn is Working With a Debt Settlement Company But Being Sued By Her Creditor by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • T.

    Michael,

    I completely disagree with you. It is in the agreement that a debt settlement company who does not have an attorney on staff will not provide legal advice, however, settling judgments of pending litigation accounts is as almost as easy if the debt settlement company knows what they are doing, how garnishment laws work in each state, what states are exempt from wage garnishment, which assets are garnishible, etc.

  • http://michaelbasilicato.com Michael Basilicato

    It is a huge problem if you do not have a lawfirm representing you. Debt settlement companies DO NOT settle judgements and summons. They can advice you but cannot settle them.
    It is in the agreement I am sure that you signed.
    The problem with most people is that they never take the time to understand the program.
    Or the Debt settlement guy does a horrible job selling it

    • T.

      Michael,

      I completely disagree with you. It is in the agreement that a debt settlement company who does not have an attorney on staff will not provide legal advice, however, settling judgments of pending litigation accounts is as almost as easy if the debt settlement company knows what they are doing, how garnishment laws work in each state, what states are exempt from wage garnishment, which assets are garnishible, etc.

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