Unsecured credit card debt

If you are making payments through debt settlement program, and if the credit cards companies have agreed to the settlement, then you will not get sued. However, if the debt settlement company is just a scam, and if your payments are not getting forwarded to the creditors, then you may get sued.

Quote:

If you're already in a debt settlement program and makingthe payments on time, then the credit card companies will never drag you to thecourt. But it's important for you to know that your debt settlement company ismaking the timely payments to your creditors. I hope that you've checked thecredentials of the debt settlement company before entering the program.

To make sure that the debt settlement company is makingperiodic payments to your creditors, you can ask them to provide you monthlystatements. These statements include your account balances, fees paid,settlements completed, remaining debts, etc. This is included in the DebtSettlement Consumer Protection Act, 2010 Sec. 1002, Required Acts and you'll not becharged for this.


Regarding your question on whether the credit card companies can take your house or car, let me tell you that for this will never happen if the payments are made on time. So, just make sure that your payments are reaching your creditors on time and rest be assured that you'll never have to go to court or lose your house or car.

Paul
You have posted a similar comment on another thread I read this morning.

You state above:
"If you're already in a debt settlement program and makingthe payments on time, then the credit card companies will never drag you to thecourt".

This is patently false.

You then state:
"it's important for you to know that your debt settlement company ismaking the timely payments to your creditors".

Debt settlement companies do not make timely regular monthly payments to creditors. You are vaguely describing a debt management plan administered through a credit counseling.

You refer to:
"This is included in the DebtSettlement Consumer Protection Act, 2010 Sec. 1002, Required Acts and you'll not becharged for this".

This Act is not law at this time and therefore not applicable as you seem to assert in your post.

OP - Yes, you can be sued and a judgment issued against you while trying to settle. With a judgment, the creditor can place a lien against your home. When you sell or refinance the home the title company will find the lien and it will have to be paid if there is sufficient equity in the home left over after 1st, 2nd lien holders etc... have been paid.

It is extremely unlikely your vehicle would be affected in any way.


Mileage may vary