Debt settlement turns into civil suit?

Question

Has anyone had this happen? I'm trying to avoid bankruptcy and be at least somewhat responsible but now I'm being threatened with a civil suit and I'm wondering if bankruptcy is the best option? Anyone been through this?

Answer 1

Im in the same situation and I didnt appear on court cause my bankruptcy lawyer said that is not a big deal is just a civil case but I m not sure  

Answer 2

Did you sign up with a debt settlement company -- one that promises to settle your debts for less than full balance?  The normal operation is that they collect money from you, taking their cut up front, and let all you bills go unpaid. Then when the accounts are 90 days past due, the make lowball offers under threat you will file bankruptcy.

Problem is that more and more credit card companies refuse to pay and just sue.   Be sure to show up in court and don't count on any assistance from the debt settlement company.

You would have been much better off going with Consumer Credit Counseling Service and their debt management program.  See here for site near your:  http://www.nfcc.org/

Answer 3

I am not sure of what you are asking.  Was the debt settled with a payment of less than the original balance? and now they are seeking the ballance due in court.

If you went through one of those "credit counseling services" or "debt consolidation company" then you might have some trouble.  As mentiioned by bdancer2, many of them are rip offs.

If you did go through a service make them provide you with proof that the settlement payment was for payment in full.  If it was not, then you still owe and I would contact your state attorney generals office a file a complaint.

Here is a link to find your attorney general

http://www.fair-debt-collection.com/atto...

As to bankruptcy, the cost and time may outweigh the amount you owe.

Hope this answers your question

Answer 4

Have you tried talking to a credit counselor first?  Debt negotiation would probably be your second option.  http://debtnegotiationzone.com/category/...  Bankruptcy would be your last resort.  Just keep in mind that a BK would stay on your credit report for up to 10 years.  Debt negotiation would have no negative long term impact on your credit.