In debt settlement company and have summons issued!!!

Maybe, the creditor that is included in your program hasn't accepted the proposal from your settlement company. You should verify the reasons with your settlement company and get it fixed.

Verify the case with your local county. You will get more details and then move from there. Why do you want to file for bankruptcy just because of this debt? Your settlement company will get something arranged with the company. BTW, chapter 13 frames a repayment plan with the creditors and allows keeping your vehicle and house. In chapter 7, all assets are liquidated to pay the creditors' dues.

Thanks for the prompt reply.

Actually, because I have 6 more cards including the card that issued the summons. Total of 25,000 in debt.

I am afraid that if one is summons us, the others will follow shortly. We can't aford to go to court every month 4 hours away in the city.

Can we have it moved to our county? My husband is mad now at me, he thought the company would keep us out of going to court.

The settlement company does not offer terms and agreements with the company, they negotiate offerings..The card company must not want to wait on us to save the money.

I am terrified.

About bankruptcy....wouldn't it be easier?

We own NOTHING, but a broken down blazer valued at 100.00. Our vehicle and house payment is current and we don't want to lose it.

Which bankruptcy would help us? Or are you saying that the company maybe able to work out a deal with them?

Your settlement company is charging a fee for the services offered to you. They should show you some results with this company who filed the summons. In any case, make sure that you file the answers to the court. If you don't show on the hearing date, a default judgment will be put in your name and you will be held responsible to pay everything legally. On the hearing date, show your income papers and the proposals drafted by your settlement company. It will prove your positive intentions of clearing the debts.

You need to call your settlement company and get the latest updates on this account and work out a plan. If bankruptcy is the ultimate choice, chapter 13 will help in retaining your house and vehicle.

Well, There is nothing to show on my settlement company and the card that issued the summons. There is nothing written in paper until I have enough funds to settle on an account or until the card says they will accept what funds I have.

What do you mean file all answers with the court? I don't have any answers. I don't know how to file anything period. Never done this before.

Chapter 13, don't you have to pay back some of the creditors? What if I can't afford the payment? I am paying 400.00 right now a month and it is about to kill us. We have been paying this for 17 months now.

I don't know what would be better...

My mother went through bankruptcy and she also told me that This is like a last scare tactic to get me to file bankruptcy or pay it in full. She and my father did not go to court and their check was not garnished. They never heard another word from the company. My mother told me to not file bankruptcy over this one card, that it was not worth it. I am SO CONFUSED.

Relax, LinderLou. Tell us who the company is and maybe we tell you who to contact for more direct help. However, settlement does not stop lawsuits--I would expect the company would have made it clear to you.

Yes, they made that clear to me. They also told me they would try to stop it from going to court and reduce my monthly payment with them to pay the card that is sueing me. I am just afraid they can't do it. They said worst case scenerio, we end up going to court and having to prove that we are in the debt settlement program and that the judge more than likely will favor us for trying to do something. I don't know at this point.

I wonder if I should just stay with my company and deal with this court or seek bankruptcy.

I looked it up on the county I live in, and it is showing up under out county and I believe that means, we just go to our local county office.

I am terried and on my last string of sanity.

My 4 year old caught headlice and I discovered the horrible citters on Mothers Day. I have been going nonstop ever since. I can't handle much more news without having a major breakdown.

Try to relax and get a good night's sleep. Then contact your settlement company in the morning. What settlement company are you dealing with?

Did this credit card agree to the settlement? Yes, Chapter 13 is a stuctured repayment bankruptcy. Chapter 7 is a complete discharge of debts. Since you have few assetts, generally creditors don't do anything but accept the discharge.

I didn't quite understand, have you already filed? You wouldn't contact a bankruptcy judge (or trustee), you'd contact an attorney.

Yes, judges look favorably on those who try to clear things up before it makes it to court. One way or the other, do show up, if it goes to trial. Many states have quite a number of exemptions and statutes regarding people who have no assets and little money if they are sued.

Sassnlucy is right. Don't let this get to you and bother you. Don't be scared, you have rights too. If this is one of the credit cards in your debt settlement plan, then you might even have grounds to sue them.

Ok, I am not going out to file bankruptcy on this card just yet. It is only one out of the six that has took it this far.
I have been in debt settlement for 17 months and seems to be working so far and one was already settled.

Thanks for the information.

Nah don't go out and file bankruptcy right away. Talk to the settlement company and see what they have to say. I agree that if you did end up having to go to court the judge more than likely would rule in your favor since you are in a program. Let us know how it goes!!

I am in a similar situation to Linderlou. We were extremely stupid and trusted the word of a fraudulent "debt settlement" company. They settled a couple of our small credit cards but we were issued summons on a couple accounts. Again, we trusted their word that it was just a scare tactic and thus did not go to court. Judgements were made against us in the amount of the debt plus fees. Since then - the supposed "debt settlement" company has disappeared and we have no way of tracking them down.

Ok, I checked with local court. Yes a summons has been issued and WE HAVE NOT BEEN SERVED YET. The court verified that there was no court date set and it was issued on 5/7/07. Chances are they pulled our assets and found out we have nothing and decided to drop the case however, I called my debt settlement company and they told me:

To fax the summons to them after we are served. They then said they will call them and make payment arrangements with them and will drop that card from the program in order to lower my payment to them to afford new accomodating payment.

Worse case scenerio: go before judge and make payment arrangements before judge and the settlement company told me that they would still remove the card. Now, they mentioned to me that the JUDGE is highly likely to favor us, since we are faithfull trying to clear this debt. My monthy payment could be as low as 50.00 a month.

So, I have not gave up hope on my settlement company yet. They also told me that answering a summons is not near as bad as bankruptcy, I don't know at this point.

They cannot get a default judgement against me, WITHOUT serving me a court date first to appear. A summons is NOT a court date and I previously thought that it was.

So, we appear and no default.

They also told me that:

If payment arrangements are made with settlement company, then the card will notify court that arrangement has been made and I won't be served. But I will check with court every week and see if anything had changed.

Actually, I thought they thought I would not know about this until actually served, but I checked online paper.

How did you find out about the summons?

Just be sure to follow all the directions on it. Sometimes you are required to "answer" the summons within a certain time frame. Usually your "answer" is A. Pay in Full B. Request a Hearing C. Request a trial. Make sure to do answer if it requires you to, don't just trust that the company will drop it because they said they will.

Linda, sounds like they told you the right things to do. Also, I wouldn't file bankruptcy over just one card.

If the credit card company accepts some payent plan, and say that they have dropped the suit - call the court and make sure they really did dismiss the suit. Some lie in order to get a default judgment.

I have some questions.

#1. You say to answer the summons. Either by pay in full, trial or hearing? How in the world am I to do that with no assets or money to spare? IF anything, I would have to make payment arrangements with them. So, by answering the summons..do I mark out pay in full and replace with arrangements?

And, a trial for a credit card bill? I have never heard of that? What do they do have a jury and hang you there if found guilty? go to jail?

What exactly takes place at a hearing? The Judge hears your case and why your not paying (obviously because I am in a debt settlement company).

Yes, I will be sure to check with the court before the 30 days to make sure nobody is lying. To answer one of your questions I found out by reading the local paper.

Thanks for all your help.