I'm on a Debt Settlement Plan-Am I Going to Get Sued?

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I'm on a Debt Settlement Plan-Am I Going to Get Sued?

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I'm on a DSP-Am I Going to Get Sued? Making the decision to participate in a Debt Settlement Plan (DSP) is always difficult, as there are many things to take into account, one of which is the possibility of getting sued.

With settlement, unfortunately, there is a possibility of being sued by one of your creditors.  

In order to obtain settlements, your accounts must be delinquent for a period of time, which means that your creditors will no longer receive monthly payments from you until they are willing to negotiate for less than the full balance.  

When an account becomes delinquent, the creditor will often become more aggressive with their collection activities, which includes escalated phone calls and possible legal action. If this does occur, there are things you should do to make the process run as smoothly as possible. 

  • Contact us. One of the benefits to being on a DSP is having access to an attorney who can provide legal advice, prepare a response, and explain your options if a creditor does become aggressive with their collections.
  • Submit all documentation. If you receive any legal documentation regarding your creditors, it is important to fax us the documents as soon as they are received so that an attorney can review them.
  • Be patient. It can take 6-8 months before any creditors start to nibble at the settlements being offered to them. The process takes time, but rest assured we are here to help along the way.
  • Payments. Make sure you continue to make timely payments, (and extra payments when you can), this will enable you to build your escrow balance, and thus lead to faster settlements. 

Keep in mind settlement can be difficult, but don't lose sight of your original goal-to become debt free! 

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Suzanne CramerSuzanne Cramer

Suzanne is a certified credit counselor and a Social Media Specialist for CareOne Debt Relief Services. Suzanne writes for Divorce, Debt and Finances and Major Life Challenges. Follow Suzanne on Twitter @ADivorcedMom where she shares her insights as a single-divorced mom with tips and tricks to keep your finances in check. 

 

 

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  • thanks for the advice... :)

  • Do I have to continue contacting these creditors and taking their calls.  I have sent letters and have called.  This never stops all day long.  Do you ever

    call them as lawyers so this will stop.  At this point I really do not know what to do.  If they would not call I would be fine but when you tell them the

    same story when does it stop.

  • Just so you know, i have not found this program that useful.   I am being sued by Citibank,  and care one when i notified them of an attorney from North Dakota, I sent my papers in on Sept 1.  it took until february when i was served with papers and now have a tentive court date.   this program failed to informe me that they know how agressive Citibank is, and they wont even send a cease and desist letter to them knowing they are agresseive,  I also have a problem we taxpayers bailed out Citibank, but they refuse to work with this debt settlement program,  go figure.  So, no i am not happy,  i am now forced into bankruptcy because i do not want the stress any longer   so good luck to those that think this program works.

  • So far I am having good success with this program.  We have been in it three months and care one settled two small accounts.  I got a call from a law firm that they were going to sue me over an account with chase.  I was very scared.  They said they wouldn't work with care one and they wouldn't give a settlement I had to pay the full amount over a few month was the best they could do.  I was very scared but their was no way we could meet their demands so I insisted they call care one.  I called care one and asked that they give this account priority which means they don't use any of my payment money on any other account until they get an agreement on the one I prioratized.  That same day they got a settlement agreement with the law firm for 50% of the balance spread over 11 months.  This still leaves money from our monthly payments to work on other accounts.  As long as we make our payment to care one on time every month we don't have to worry about this account anymore.  I will be more than happy to pay care one their success fee on this account and am very pleased with how quickly they got it taken care of.  I will say we did owe just under 4000.00 on this account and owe less than 5000.00 on any single account we placed with them so I don't know how larger accounts would get handled, but as for our accounts they are doing a great job and I'm please and relieved with my decision to go with them at this time.

  • @karol47362  I know this is a stressful time but, you did the right thing by hanging in there with us. Settlement is not a quick or easy fix but it does work!

    We wish you contined success on your plan :)

  • Have to say I have mixed feelings about the settlement program.  1 small creditor down and currently working on another but not sure if my nerves can handel the stress of going home every day and wondering if more paperwork on my door for another lawsuit.  I have asked to speak with a bankruptcy counsler but never heard from them so not really sure what to do.  Right now, just crossing my fingers that no more law suits come through until this one is done, but if one does come before this one is complete..... bankruptcy is about my only way..

  • @Pwbrown  The debt settlement plan can be stressful as the waiting and dealing with creditors can become overwhelming. I am going to have someone from servicing contact you regarding your request to speak with someone regarding bankruptcy. Look forward to hearing from someone shortly. Hang in there!

    Suzanne

  • I have been in the program almost a year and a half and have had no success at all. I owe more now than when I began and I am being sued. I have a court date in May. Every time I call to try to find out what is being done I get different answers. At this time I am not happy at all with the program.

  • I have just started the debt settlement plan and I am reading all of these comments about the program.  It is really scaring me about getting sued.  I have never been sued over anything and I don't want to be now.  I am not sure if I should continue with the program or not.  If companies will sue me, I would rather get a 2nd or 3rd job and try to pay off the debt then get sued.  Not sure what to do.  Now, I am wondering if I should go debt management and do it that way.  Not sure how I would pay it but it would be better than gettng sued.

  • I was on the management program and making progress, but the payments were high. Care one advised me to switch to,the settlement program. I have 4 small accounts that have been settled for half of what I owed . I'm happy with that.. But I was never told I I could be summoned, garnished or sued ????!? I don't think this is the road I wanna take. I'm a nervous wreck and I feel I was lead into the dark on this one !!!!?!!! I have 3 accounts that are over $2,000.... I'm real worried about these. At least on the management program they were all getting a payment every month !

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