I'm on a DSP, What happens if a Creditor is not willing to Settle?

A Straight Talk on Debt

A Straight Talk on Debt gives you the real deal on debt, straight from our employees and personal finance experts. Learn more about debt relief plans and how to be financially fit.

I'm on a DSP, What happens if a Creditor is not willing to Settle?

Rate This
  • Comments 10

We are answering our customer's top questions regarding their participation in the Debt Settlement Plan (DSP). We want our customers to find continued success by fully understanding their plan and what it takes to be successful.  

This month's question: What happens if a Creditor is not willing to Settle?

In most cases, eventually creditors settle, it just takes time. While it is unlikely for a creditor not to settle, if a creditor chooses not to settle, one of the below may occur.  

  • Statue of limitations.  A statute of limitations takes effect meaning the creditor may no longer be able to pursue collection activities. The terms vary state by state and whether or not an account has passed the statute of limitations should be discussed with a licensed attorney. While enrolled in a DSP you have access to legal counsel that can advise you in this situation, should it arise. 
  • Increased collection activities.  A creditor may increase collection activities including lawsuits however our clients, both P&A and CareOne, have access to an attorney who can provide advice and suggest alternatives if a creditor pursues that action.  
  • Debt may be lost. In many instances a debt may be moved between multiple collection agencies and debt buyers and become lost. In the event this happens you may no longer be contacted by a creditor.

Settlement can be difficult, and is a commitment to patience, but remember we are on your side and here to help. If you have a question you would like to see posted please feel free to leave it in the Comments section or, ask directly in our Ask the Expert Forum.

 

Your comment has been posted.   Close
Thank you, your comment requires moderation so it may take a while to appear.   Close
Leave a Comment
  • * Please enter your name
  • * Please enter a comment
  • Share
  • I want to know what usually happens when a company like this local personal loan company files suit, do they usually settle, can they garnish wages, etc.?

  • What happeneds if my creditor persues legal action or tries to garnish my wages?

  • @buckwucky  Unfortunately there is a possibility of getting sued or having your wages garnished when you are enrolled in the Debt Settlement Plan. In order to obtain settlements your accounts need to be delinquent; and when your accounts are delinquent creditors will often become more aggressive with their collection activities. If you receive a summons it is important to notify us and send any corresponding documents. One of the benefits of the settlement plan is having access to an attorney who can provide legal advice, prepare a response, and explain your options if a creditor does become this aggressive with their collections. A wage garnishment based on consumer debt is possible only if the law allows it in your state and the creditor has already obtained a judgment in court. You must receive notice of a wage garnishment and be given a chance to object before a garnishment is approved by the court.

    Hang in there!

  • It should be noted - the "attorney services provided through your DSP" come with a pricetag over and above the fees being charged by Care One.  After I paid all my monthly fees there was exactly $73 left to apply to my payment for that month.  Yeah, creditors are real happy with a $73 payment.  It's not all it's cracked up to be, believe me.

  • It's really disheartening right now, as I thought calls were slowing up, but instead they actually are picking up pace.    They call my home,  then cell, then business line.   I've chosen to just let them ring as, when I do speak with them   they're general response is 1.   well we can't talk with a lawyer, and if I say well this is in joint effort with Care One,   then they say we'll exactly what are they doing for you, and they haven't contacted us yet, so we will continue to contact you   Needless to say it's a true PIA,    I promise when I get done with this mess. never  never again again.

  • It cracks me up when people come up in here in dire straits, enroll in DSP, and plan to wake up and everything is gonna be fixed. Let's face it. We are in a bad financial situation, it didn't happen over night, and it isnt gonna get fixed overnight. Be positive,take one day at a time, and have great patience. It will work itself out regardless. It is what it is and all we can do is try our best!!

  • I have had a few creditors tell me that they do not work with companies like Careone. Is this a tactic to attempt to make me pay them directly or is there a list of companies that Careone knows for a fact that they will not work with them?

  • @frost24 Yes this is a tactic many creditors may use. Hang in there, settlements take time and lots of patience.

  • I do not know about "time",  but I have been one debt settlement since July 2011 and 4 of my debts have been settled and they are half way through settling the 5th one.   One creditor stated last month that they would sue and I said "Bring it!".     I also let them know that the moment one of them sues is the moment that I file for bankruptcy.   Guess what,  Persels & Associates are equipped to handle that too.   That scares a creditor.   Knock on wood,  none of them have sued me yet.   You have to be stearn with your creditors.  Let them know, you want to pay them, but you have sought out legal representation that will assist you with it.   Many of them will state that they do not work with Persels & Associates....   Hello, Bill Me Later aka Bill Me Liars came up with some way to play ball with Persels and settled.    Do not be weak on this. Agreed,  this is a difficult experience,  but you also need to let the creditors know that this is a better option than bankruptcy.    At least they are receiving some of their money back.  If you filed from bankruptcy,  they would get nothing.

  • Yeah it cracks me up that people will lie to you over the phone and tell you they don't work with CareOne. Global Collections kept telling me that and I almost caved.  3 months later they are all paid off thanks to CareOne. One down four to go!

Page 1 of 1 (10 items)
Your comment has been posted.   Close
Thank you, your comment requires moderation so it may take a while to appear.   Close
Leave a Comment
  • * Please enter your name
  • * Please enter a comment
  • Share