Ask The Get Out of Debt Experts Debt Settlement Lawsuit

We Are With Pathway Financial Management and Just Got Sued by a Citibank. – Penny

“Dear Steve,

My husband entered into a debt settlement agreement with Pathway Financial in May of 2010. They have only settled one credit card. Today he got a court summons regarding a debt from Citi Bank. They are suing him and threatening a judgement if he doesn’t pay the fully owed debt of over $7,000. My husband is submitting this to Pathway today. What can happen from here? We are worried that they can garnish his wages or freeze our bank accounts. Can that happen. Thanks so much.


Dear Penny,

It is a reality that the creditor can take your husband to court, win, and then move for a wage garnishment or other remedies available to them under the law in your state.

A relationship with a third-party debt relief company does not prevent any creditor from legally enforcing the contractual terms of the credit agreement. All third-parties serve to assist but cannot break the contract between the consumer and the creditor, with the exception of bankruptcy.

At this point let’s give Pathway Financial Management a chance to deal with this and see if they can’t strike an agreement with the creditor. It may not be too late but they must act fast.

I’d love to make this a good news story so let Pathway Financial know this article exists and I want them to follow-up by posting in the comments what they are able to do. If they can resolve the situation, let’s praise them if we can.

Please post your responses and follow-up messages to me on this in the comments section below.

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About the author

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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