I Am Working With Debt Settlement America But Now I’m Getting Sued By My Creditors. – Bee


“Dear Steve,

I was divorced in 1999 after 21 yrs of marriage and 2 bankruptcys with my ex, Since then,I have bought and sold 3 houses and purchased 3 brand new vehicles and re-built my credit. I had my credit cards current but didn’t feel I was getting anywhere, even tho the payments were always made on time and usually more than the mininum, I was getting nowhere on the balances.

So I contacted Debt Settlement America and was told to stop making the payments and they would work with my creditors while I paid them every month. Then I started getting summons served on me. DSA was unable to do anything for me so I stopped paying them. I have almost 26000.00 in credit card and personal debt.

I have consulted a bankruptcy attorney, but I really don’t want to go that route. How can I negotiate with my creditors or should I just file bankruptcy for the 3rd time in my life. I don’t think DSA was any help to me at all, all my credit cards were current until they told me to stop ,making payments, now its been over a year and i can’t catch up on the payments that include more interest and late fees? What do you suggest?



Dear Bee,

I think you’ve fallen into the negative pit of debt settlement. Getting sued while in a debt settlement program is not that uncommon. And being told to fall behind on debts while entering a debt settlement program is not unusual at all. Creditors reserve the best deals for people that are behind and demonstrate they can’t pay.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

If you have the cash on hand to offer the creditors at least 50% of the balance you owe, you might want to contact them yourself. Just remember, that you won’t be out of debt unless all agree. Some might take 20% and some may not be willing to reduce your debt at all.

See also  Should We Deal With One Creditor at a Time to Settle Our Debt? - JM

Right now this is a mess. You could click here to try a debt management program and see if they could get you a monthly payment you can manage, otherwise, I’m afraid that back to bankruptcy is the route you’ll have to take.

I did notice that Debt Settlement America brags on their site about winning The Association of Settlement Companies (TASC) 2007 President’s Award for excellence. TASC is always going on about how great their members are so maybe TASC can assist you to get some straight answers from their award winning member that seems to not be providing you with good service.

The Association of Settlement Companies
16 N. Carroll Street, Suite 900
Madison, WI 53703
888-657-8272 (TASC)
888-482-3791 Fax

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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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