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Yes. A debt repayment program other than a chapter 13 bankruptcy, does not confer legally binding terms on creditors to prevent them from seeking litigation. AN exception obviously would be if the creditor has signed an agreement agreeing not to file a lawsuit as long as the debt repayment obligation is met. It is however, very doubtful a creditor would agree to such.

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โˆ™ 2006-03-18 03:40:52
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Q: Can a creditor sue you if you are enrolled in a debt settlement program?
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Should you get enrolled in Debt settlement program to be debt free?

Debt settlement helps you in reducing your credit card debt & other unsecured debts. provides credit card debt settlement,tailor made plans for debt negotiation and giving you relief from your debts & taking the financial burden off your shoulder.

If you have been enrolled in a debt settlement program for four months is your credit going to get any worse whether you stay in the program or leave the program?

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What exactly is a debt settlement?

Debt settlement, also know as debt arbitraton or debt negotiation, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full.

Can a collection agency sue you if you're enrolled with a debt settlement group?

Yes. A lawsuit is still viable even if the debtor is actively participating in a debt repayment plan. It is unusual for a creditor to take such action however, as it is added expense and aggravation and often there is no certainty that a creditor would be able to execute a judgment.

How to Settle Debts for Less Than What You Owe?

If you have an account with a creditor that is seriously delinquent, the creditor may agree to a debt settlement to pay off the account in full. You may approach the creditor with an offer yourself, or you may work with a professional debt settlement agency. Both methods have advantages and disadvantages that are worth researching ahead of time. If your creditor accepts the settlement, you only have to pay the agreed-upon percentage of the debt.

How does a credit card debt settlement affect your credit?

Answer:Debt settlement will have a larger effect on your credit. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.I took help of Freedom Debt Relief to settle my credit card debts, its been more than a year that I enrolled into their program and now I am almost debt free.

What is does it mean for an original creditor to recall their collection?

Recall of a debt by a creditor is when the original creditor asks for the debt to be returned to them after they have sold it, often to a collection agency. This may occur if the debt has not been collected for a certain amount of time, and the debt will be sold to another agency to collect, or if the debtor offers the original creditor a settlement.

What are the advantages of a debt settlement program?

The advantages of a debt settlement program are that one can potentially get their debt load reduced and pay off the balance sooner. Usually one would have to negotiate with the creditors in order to come up with an agreement for the debt settlement.

Debt Settlement Company is increasing in numbers which debt settlement company should one trust with?

Off course, many debt settlement companies are increased in numbers but, one can compare the debt settlement company's policy before taking any debt settlement program. For further details, visit

What is a negotiated debt settlement?

Negotiated debt settlement is when a creditor agrees to close a debt and consider balance zero by accepting less than the full balance that is owed. Let's say you owe capital one $10,000. You have $3,000 and offer them to consider the remaining balance forgiven. If they accept, you have a negotiated debt settlement.

How do you settle debt with credit card?

Debt CAN be settled with credit card debt and other unsecured debts. Negotiating a settlement is between you and your creditor and settlements have happened for millions of people and helped them get out of debt.

What is the first step for debt settlement?

The first step for debt settlement is finding out how much an individual owes, and after that, the following step is to contact the creditor or company. Usually the most effective way of contacting a creditor is to call the company, because it leaves room for questions and takes less time.

Is debt settlement a good choice?

AnswerDebt settlement helps you in reducing your debt amount significantly, the debt settlement company negotiates with your creditors to reduce your debt amount. It is a better option than filing bankruptcy. I took help of Freedom Debt Relief and their debt reduction program helped me in reducing my debt amount.

How long is a levy valid?

Until the amount owed is paid in full or the judgment creditor agrees to a settlement of the debt.

Do debt settlement attorneys help with creditor lawsuits?

That will vary depending on the debt settlement attorney. Some will assist you if you are sued. Others state in their contract that if you are sued that they cannot and will not assist you. It's best to ask that question before signing up for debt settlement. russian speaking lawyer in omaha, nebraska

When judgment entered against debtor is creditor held to any oral settlement agreement to pay off debt made between debtor and creditor?

Not unless it is in writing unfortunatly.

Bankruptcy or Debt Settlement?

A bankruptcy will be listed and hold your credit score down for 10 years, while the delinquent payments incurred while enrolled a Debt Settlement program will be there for only 7 years (and in some instance, even less). So at a minimum, your credit report will be cleared at least three years earlier when using Debt Settlement company as opposed to bankruptcy. Another important factor to remember is that a typical debt settlement program ultimately resolves your debts for much less than other debt relief options. And, unlike bankruptcy, you won't have to sell your house or other assets in order to free yourself of your liabilities. Also remember that there are several other debt help options out there besides Debt Settlement and Bankruptcy, such as Credit Counseling and Debt Consolidation Loans, and that each has their own upsides and downsides, so it is important to evaluate each carefully and examine how they fit into your overall needs and goals.

Where can I learn about tax debt resolution?

Tax debt settlements are a little more precarious than the normal debt settlement because the creditor is the U.S. government. Uncle Sam has greater penalties and is far more demanding in repayment of the debt settlements due him. However, the government can actually be a fair and merciful creditor in resolving these situations

Can you do a debt settlement if there is judgment against you?

Yes!! you can settle your debt before, during, and after litigation. If you decide to enroll in a program, be leary of any that don't disclose information to you. generally a good debt settlement company will require extra steps from you prior to enrolling a legal/judgment debt. A bad debt settlement company will take your debt no questions asked.

Can a police officer enter into a debt settlement program and if so would this prevent him or her from a promotion?

There is nothing preventing an officer of the law from entering into a debt settlement program. How is would affect his/her eligibility for promotion would be up to their individual agency's requirements.

What are debt settlement companies?

Debt Settlement Companies provide relief from your current budget. It will allow you to bring down your current monthly payments on your debt and as a result, you have more cash available in order to spend on other things that you may need. Not only this, but some of the options available to you will also allow you to get some tax benefits in the process. Answer: Debt settlement, also called debt negotiation, is a form of debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy.

After you pay the collection agency the negotiated credit card debt settlement amount can the creditor still chase you for the balance of the credit card debt later?

Yes, unfortunately a negotiated settlement does not legally satisfy a debt. I would recommend that you request a letter from the creditor stating that the debt has been satisfied and make sure to submit that to the 3 credit bureaus as proof of fulfillment of collection. that is right, i settled a debt and they still have the balance on my credit report. I called the collectors (citi bank) and they told me i can go and dispute it

What are benefits of Debt Settlement program?

Through debt settlement programme people can save their lots of money. Getting the debt details of customers debt settlement agents starts their work. fast they contact the creditors and make them accept a 40 to 50 percent settlement rate. The companies finally accept that condition because otherwise they could get nothing. Some times people spend much money in credit but atlast they don't paid off the full. But their creditors will take all money from them, in that case debt settlement is very essential for the debtors. Debt settlement companies can manage this problem and clear the debt after a settlement process.

Where can one find a Canada debt relief program?

Top Consumer Reviews, Cesi Debt Solutions, Debts Settlement Inc., No More Debts, and Debt Relief are all places where a Canadian can go in order to enroll in a debt relief program.

Can you still get credit cards if you are in a debt counseling program?

== == You can probably still get credit cards if you are enrolled in a debt management program. However, doing so can jeopardize the benefits that you already have with your existing creditors. Your interest rates and minimum payments could go up substantially if they drop you from the program. If you are enrolled in a debt management program, you have agreed not to open new credit card accounts until you complete the program. Remember, this is what got you in trouble in the first place, so it is best to be careful when applying for new credit when you have had problems in the past.