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How Do I Handle the One Creditor Not in My Debt Consolidation Plan That is Suing Me? – Tony

Tony

“Dear Steve,

I currently have most of all my credit cards in a debt consolidation program except one. One of them cant go on the debt program because its in litigation How do I handle that ?

Tony”

Dear Tony,

I’m left wondering how effective this debt consolidation program is that you are in. If the goal was to resolve all of your debt, having one car left out because they are suing you seems like a slow simmer recipe for a hell of a mess.

Here is what I predict will happen. You will receive a court summons when you get sued over the one omitted debt. The court will rule in favor of the creditor that sued you because they have a contract that shows your promise to pay and what you agreed they could do to you if you didn’t pay.

The creditor will win, get a judgment and potentially garnish your wages. Once that happens your debt consolidation payments will become unaffordable and you will default on them. All the money you will have paid in the debt consolidation plan to date will be pissed away since it did not resolve the problem.

Talk to your debt consolidation company about this issue. If they are willing to guarantee you that my predication will not come true, stick with them. If they won’t and you are not prepared to face a slow downhill slide, go talk to a bankruptcy attorney and ask them for their professional thoughts about your situation.

A bankruptcy will stop the litigation and neutralize the other debts as well. I’m not anti-debt consolidation. I’m against solutions that will not resolve the primary problem.

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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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