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We Are Working With a Debt Settlement Company But Got Sued Anyway. – Krista

“Dear Steve,

We have accumilated $24k in credit card debt and turned it over to a credit card consolidation company. After a few months of trying to pay more than we could afford, found that they weren’t really doing anything. We settled a few on our own, but times got rough and again we found ourselves incurring penalties and that we were “not eligible” for the credit cards’ debt programs.

So we found a company that would work with the debts to settle them. I just got served a court summons today and am scared out of my mind. I was told by the company not to respond to the lawyers letters of “threat” of suing and that they would work with them. But convienently they do not give legal advice.

After I have been summond, is there any way to not have to take it to court, or am I past the point of no return? Should I call the lawfirm and try to negotiate a payment plan?


Dear Krista,

Unfortunately debt settlement does not protect you from being sued. The fact is you were not making the contractual payment and so the creditors sought a solution as provided for by law.

Your choices at this point are to negotiate a repayment solution you can meet with the law firm or seek legal protection under the law with bankruptcy. Bankruptcy will stop all suits and block any judgment or wage garnishment.

Try talking to the law firm first and if you don’t get anywhere with them, click here to find a local bankruptcy attorney you like and go talk to them.

Your situation is more and more common these days.

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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.

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