Assets and income that are exempted from creditor lawsuit action is determined by the laws of the state of residency. The property that a debtor can protect from creditor execution is the same property that is noted in a bankruptcy filing. In most cases there are certain federal exemptions that can be used as well as state to stop creditor seizure of specfied property owned by the defendant debtor.
It is recommended that you pay an old debt through the original creditor. Credit settlement companies are out to make a profit and they will negotiate terms that are not true. Also, it is possible that you can pay the settlement company but still owe the original creditor. It has happened to me. The negative information reported by the credit card settlement company will affect your score negatively.
This largely depends on the jurisdiction. It is possible for some insurers to press for reimbursement from a settlement but it depends on a number of variables as well as the particular laws of the state. The article below goes into more detail on the possible instances where repayment is or is not required.
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