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I'm a little concerned with some posts regarding going with the debt consolidation route.When you sign up for this program with a reputable company and the counselor is negotiating with the debotors, are they apt to try and sue you for the full amount ??

Posted: Sun Nov 11, 2007 11:33 am Subject:

fly...it really depends on the company and whether they will accept the terms of the consolidation. Is this consolidation or mangement?? Uusally with consolidation you send in your manoy and when they have collected enough the company will begin negotiations to pay off a particular loan/debt.I believe once they enter into it they will not sue you for the full amount. The thing that worries me about that is in the interim nothing is being paid. With management or couseling as it is called sometimes....proposals are sent out, you make a lump sum payment every month which is dispursed every month to your creditors. As the smaller ones get paid off the extra money gets added to the larger ones until they are all paid off. I was lucky in that all my creditors I listed, credit cards, medical bills, and 2 ipdls all accepted the proposals.

Posted: Sun Nov 11, 2007 12:39 pm Subject:

Hi, I can only tell you my experience as well...when i started with money management international, formally ameridebt actually, my money was put to use as soon as i made that first month's payment of $214. that amount included the company's fees as well and i noticed a big difference with collections calls stopping and such. I am pretty sure if i remember correctly, my counselor did research prior to accepting any money for i had to fax them all of my accounts and then from there, the counselors negotiated. that's how i found out that Sears and some other account wasn't going to agree to the terms of the program, thus this is still why i'm paying sears now, long story.
Now, unlike Morningstar who looks like you had to deal with medical and pdls, my consolidation solely dealt with consumer credit cards, this isn't to say that they wouldn't work with others, i just didn't have medical or other kinds of debt at the time.

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Can I be sued while being in the debt consolidation plan?

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