Q: Will your program stop legal action against me?

A. Creditor lawsuits are not common, but creditors have the right to use legal means to collect a debt. Some creditors are more likely to file suit than others.

• It is also a common tactic of third-party creditors or collection agencies to threaten you with a lawsuit (which is illegal if they do not intend to sue). The reality is that third-party creditors or collection agencies rarely ever sue. Furthermore, it takes time and costs money to file. Lastly, even if a creditor is to take legal action, they can only collect what you have. A wage garnishment takes time and always hinges on your employment and may not be applicable in your state. If you own a home it is difficult for a creditor to attach the equity in your home and it may be protected by your state’s homestead act. In conclusion, it is typically more cost effective for a creditor to settle than to pursue legal action. While we cannot guarantee that legal action will not be taken, we are confident that our experience in dealing with creditors can reduce the possibility of this happening.

• Despite any legal action that may or may not be taken, your account can be settled before, during or after the suit. Just because an account goes to legal action does not mean that we cannot settle it. The threat of legal action can be the scariest of all. IT CAN BE HANDLED. We recommend that our clients seek competent legal counsel in certain situations.

• Note: We cannot provide you with legal advice. We work with your creditors to find a solution that will satisfy everyone before legal action is taken and we provide access to free and discounted legal services.

 

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