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How to get out of debt I New FTC Laws I Does debt settlement work I Choosing a debt relief program I Debt Settlement or Debt Consolidation I Debt settlement and your credit I Can you settle your own debt I Understanding debt settlement fees I Debt settlement and your taxes I Can I be sued I Debt Help - Get Started today!

Can I be sued while going through a debt settlement Program

A 10 part debt relief guide

Part 9 - Go to Part 10
 
DEbt solutionsCan I be Sued while going through Debt Settlement?
It is possible to get sued while in a debt settlement program, but as long as you honor your agreement, you should be in the clear.  Keep in mind that these creditors are doing you a favor by allowing you to submit lower lump sum payments each month.  Because of your financial hardship, they're willing to work with you and let you submit a fraction of what you owe per month on minimum payments.

Consider this scenario:  You owe a friend $100.00, but a year has gone by and you still haven't paid him back.  Finally, you promise to give him $50.00.  Three months go by and your friend never sees that $50.00.  Don't be surprised when that friend aggressively demands his money back.  

Debt settlement is often a last-ditch effort before filing bankruptcy.  However, if you're nearly flat broke and on the brink of bankruptcy, chances are good that you may not be able to honor your debt help agreement.  Therefore, don't be surprised if you encounter a lawsuit.

The chance of a lawsuit also hinges upon the quality of your debt settlement company.  Unfortunately, there are fraudulent debt settlement services out there that will hold onto your monthly payments and fail to distribute that money to your creditors.  That's one in case in which it is the fault of your debt settlement company and not your financial irresponsibility.

All that being said, given how many accounts fall delinquent each year, lawsuits created to collect money on a debt are becoming less and less common.  After all, it costs the courts money to sue someone. 

Can my Wages be Garnished while going through a Debt Settlement Program?

In truth, wage garnishment is mainly a scare tactic used by creditors to scare debtors into committing to a payment schedule, whether or not they have the funds available. Actual wage garnishments actions are rare.  And if they do occur, you will receive advanced warning.

Wage garnishment cannot occur instantaneously. First your creditor must bring a lawsuit and obtain a judgment.  At that point, you will be given the opportunity to pay up.  In other words, nobody can garnish your wages without court approval.

If your wages have been garnished previously, settling your debt may be more difficult. You've already given the creditors a method of collecting your funds, so why should they opt for a lower paying option?  However, if your debt settlement plan accelerates the repayment of debt, creditors are frequently willing to negotiate.

GET THE FACTS
 
OK, so now that you know whether or not you can be sued during your debt settlement process or whether or not your wages can be garnished during a debt settlement program, let's move on to the part of our 10 part debt settlement guide.
 
Go to
 
Part 10 - How to get started and get the debt help that you need.
 
10 part debt guide

Part 1 - New FTC Laws
Part 2 -
Does debt settlement work
Part 3 -
Choosing a debt relief program
Part 4 - Debt Settlement or Debt Consolidation
Part 7Understanding debt settlement fees
Part 8 -
Debt settlement and your taxes
Part 9 - Can I be sued
Part 10
Debt Help - Get Started today!
 
Need more help?
 After reading these steps, if you'd like to further your education, see our reviews of the best debt consolidation company and top 10 credit repair companies.
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