My debt settlement company instructed me to log all messages
Date: Sun, 10/16/2005 - 19:46
Thanks,
Kim
Hi NDebt Welcome to the forums. Has your debt settlement
Hi NDebt
Welcome to the forums.
Has your debt settlement company not arranged a debt settlement with your creditors? Are you not paying towards your debt account?
In debt settlement4 program, the company keeps negotiating with your creditors and once they have agreed to the settlement amount, the company pays them in a single time. Thus, your creditors get paid and there is no question of a judgment against you. Talk to your consultant and know the latest update in your program.
However, if a judgment is put in your name, the creditors have to get orders from the court. A notice will be sent to you for appearing in the court. If a judgment is acquired without any notification and court orders, it will be termed as 'invalid judgment' and legal actions won't be taken against you.
If you are paying to your settlement company each month, talk to them and know the latest proceedings.
Regards
Roxette
So if I do debt settlement, my settlement company will actually
So if I do debt settlement, my settlement company will actually make a lump sum payment to the cc company? And then I am paying them back? Just learning the ropes. Thanks!
The accounts remain current when you sign up for a consolidation
The accounts remain current when you sign up for a consolidation plan. In a debt settlement plan, you make monthly payments to the settlement company, including their fees and the amount is deposited in an escrow account created during this period. When their is enough amount deposited in the new account, the settlement company starts negotiating with your creditors and explains that you are not able to pay your debts at the existing interest rates. You have defaulted in your payments just because of the high interest rates and fees charged by them. They will try to settle the balance with your creditors. It may take some time for the credit company to accept your proposal from the settlement company. But once they have accepted, the amount that you were depositing on the escrow account will be used to pay off the balance. The credit company will send you a release letter after the debt is paid off.
