Will debt settlement save from getting sued?
Date: Mon, 02/05/2007 - 08:58
With debt settlement you actually make payments each month to th
With debt settlement you actually make payments each month to the company until your account gets enough to make an offer to a creditor to settle the account. debt consolidation is when you make monthly payments to a company and they turn around and disburse the individual payments to your creditors.
Since you have registered with the site, a credit counselor will
Since you have registered with the site, a credit counselor will be contacting you to discuss your situation.
Check this link out, it talks about benefits of debt consolidation.
http://www.debtconsolidationcare.com/benefits.html
Each case is different. If you can afford to keep your accounts
Each case is different. If you can afford to keep your accounts current, debt settlement plan is not suitable in your situation.
The settlement plan requires the accounts to be defaulted for a certain period of time. The creditor needs to understand from the settlement company that the person considering their program is not able to afford the payments at the existing interest rate. Since his situation is so worse that he could not afford the minimums also, it will be for good purpose to "settle" the accounts.
It's not necessary that the creditors will accept the proposals at the first time. The settlement company has to re-negotiate with the creditors until they are convinced. During this period, a creditor can always file a lawsuit because he is not getting the payments and even if the settlement company is negotiating with them, but your documents are important proof to explain the judge that you were never irresponsible or avoiding the payments. It's just because of your hard time that you have been forced to take this sort of decision. The judge will consider your case before any decision is done on you. In most cases, it goes to the favor of the consumer.
One more thing! Creditors consider a lot of things before taking a case to the court. The court costs and attorney fees are very costly. If it's not worth a portion of the total amount that is to be recovered from the consumer, they will hold back.