Tag Archives: debtsettlement

What’s Next If I’m Sued for Unpaid Debts?

If you owe money to a credit card company, medical provider or for a student loan and you get behind on your payments, your creditor may file a lawsuit against you. If a creditor does end up suing you, it’s not the end of the world. Here is a summary of what happens, and what you can do if you are sued for unpaid debts. What Happens When a Creditor Sues You? When a creditor sues you, it is usually called a petition. This means that the creditor has filed a complaint with the court, naming you and any cosigners in the debt as defendants. These petitions usually detail why the creditor is suing, and what they want (usually repayment of the debt, interest, and some extra for attorney fees). The creditor or collections agency is required to “serve” you a summons and a copy of the complaint. Typically, this…
Read More »

Posted in Bankruptcy | Tagged | Leave a comment

Why Is Debt Settlement a Risky Plan?

For those who find themselves in financial trouble, the proposition of debt settlement can seem like a godsend, but that is rarely the case. Debt settlement companies claim that they can talk your debts down to less than half of what they are now, but more often than not that, is a dangerous overstatement. There are alternatives to filing bankruptcy, and a bankruptcy attorney can help you evaluate those options and make the best decision, but debt settlement is almost always the wrong choice. Here’s why. Debt settlement companies offer services that you can probably do yourself. Debt settlement companies require you to pay them a fee, adding even more debt to your financial struggles. Creditors often don’t negotiate settlements until payment is past due. Debt settlement agencies will advise you to stop making payments so they can negotiate a better deal, but that can do serious harm to your…
Read More »

Posted in Bankruptcy | Tagged | Leave a comment