Want to know how often creditors sue for non-payment?

When you stop paying on a credit card the credit card company will automatically generate you a computerized letter showing you've been late. If you still don't pay the credit card company will transfer your account to their collection department and they will try and contact you by telephone.

This goes on for about six months whereby the letters get more threatening until finally they threaten to send your account to a collection agency. If you still haven't paid, then after six months or so they give up and write the entire debt off a loss on their taxes and actually do send the account to a collection agency. Now you are one step closer to a lawsuit and the bill collectors from collection agencies are pretty harsh in their collection tactics. They will initially demand the full balance, not accept any payments, and be rude to you on the telephone.Once the phone calls stop from the original lender,that most likely means that it has been sent to a collection agency.They will start the calls soon.

Hi

Welcome to the forums.

As you have taken the debt negotiation program to settle most of your debts, the consultant should be regularly engaged in negotiating with your creditors.

In such programs, you don't make payments to your creditors instantly. The company with whom you have enrolled takes the monthly payments from you and keeps it in either your account or their account. You keep contributing towards your debt in easy installments every month.

During this time when you are contributing towards your debt in easy installments, the debt negotiation company negotiates with your creditors for a lower payoff of around 40-50% of your total amount of debt. Once the creditors agree to it, the debt negotiation company pays off the whole amount to your creditors.

There are some companies which offer credit repair packages to the consumers. Beware of such companies because the negative remarks caused by the debt negotiation program can be removed only as per the federal rules and no individual or private company can repair the damage.

Talk to your consultant and know if they have contacted your unpaid creditors by now. Most probably, they might be in touch with them. You can also write a letter to your creditors and inform that you have enrolled yourself in this program and are likely to pay your debt soon. Hope your consultant will take care of it and you won't have to go through any legal actions.

Regards
Roxette

We are doing exactly what you are doing and things were going good. After a month the calls stopped. Then Monday we got served with court papers from JPMorgan Chase. Our debt settlement co. told us that there is always a possibility that will happen. But they are saying they can still negotiate with chase, just probably at a higher rate. We have 42,000 in debt on 3 cards. Chase is our lowest and will be paid in about 5 months -- but they have chosed to sue us. I hope our settlement co. is correct. I am getting ready to respond to the court papers and hope that the settlement co. is right about them still dealing with us. She told us that they will set up monthly payments. Our other option (which i would like to stay away from) is to contact them ourselves, set up payments, then take that account off our debt settlement to lower that payment. I don't know what to do, i have talked to them, but am planning to have my husband call again to make sure i was understanding everyting.

Gosh-this one is tricky because you just never know with these creditors. I have read debt settlement stories that some creditors were easy as pie to settle with but then I will read another where that same creditor is giving such a problem settling with another person.

You just never know. I just know that JP Morgan Chase does not play nice. I dealt with them with my mortgage. I kept them updated on the sale of my house, etc. They knew what day/time I was closing and everything. Wouldn't you know I closed on Friday and my husband got served with Foreclosure papers the following Monday? What is worse is they did it at my in-laws house! Talk about embarrasing. Must have gotten that address from my credit report from the past-who knows. Obviously they could not foreclose-the house was sold!

It is a process and I wish you the best of luck!

:oops:
Our debt settlement co. says to answer their complaint, request validations on everything, and wait for them to refile in the county which we live in. I was hoping to avoid that, but i still don't have to go to court. They say after i answer the complaint, that the debt settlement co. will then be able to tell them how much money we have, at what time we think we will have a negotiable amount, or set up payments to chase. We found out yesterday that chase has a home office in our state (IL), Florida, and somewhere else. That people who live on those states are more likely to get sued by chase because it is easier.
The debt settlement co. is telling me that the paper trail is just to stall untill i get sufficient funds. We have 1/2 the figured amount already and expect to have the balance in 5-6 months.
I feel like i am spinning my wheels. I am trying to get my debts paid, i just need help because we got in over our heads. isn't it better for the credit card companies to deal with a debt settlement than to push someone into bankrupsy???? Where they might not get any money at all????