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Can I stop making payments on debt settlement program?

Submitted by SimmiG on Thu, 04/30/2020 - 20:25

I am working with an organization for debt settlement. Can I request them to stop making the payments for a few months? Will I be able to continue with the program if I do so?

Actually, this depends on the company you're working with. I understand that due to Covid-19 outbreak, maybe you're facing a financial crunch. Do one thing. Inform the debt settlement company beforehand, See, what they tell you. Tell them your problem. See, they can't start the negotiation process unless you have saved a certain amount in the trust account. So, ask them if they can wait. However, keep one thing in mind, if you stop making payments, the process will be delayed. The program may even be canceled. However, given the current situation, may be the settlement company can do something. I don't know.

Submitted by David Martin on Thu, 04/30/2020 - 21:32

David Martin

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Hey Simmi!

The CFPB or Consumer Financial Protection Bureau has answered your question on their website.

They said if you are unable to make payments of your debt settlement due to coronavirus, you have a cent percent right to stop making payments for now.

Just, call them and request them by stating your plea. That’s enough.

And Yes! You can again restart the program after a few months.

Submitted by Ryan Miller on Fri, 05/01/2020 - 02:58

Ryan Miller

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Hi Simmi! In this case, you have to talk to the debt settlement company. You can discuss about the financial hardship you are going through due to the outbreak of COVID-19. Hopefully, they will understand this unforeseen situation and act accordingly.

Submitted by Craigh.terry on Thu, 05/07/2020 - 06:21


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