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I have a personal loan for $7,000 that I have not been able to make a payment for the past 9 months. Now I have recieved a notice of motion and I am being told by the attorney for the creditor that I must pay a deposit of 1200 to avoid going to court and to re-establish monthly payments after that. I do not have 1200 to get started but I want to avoid court and negotiate a low monthly payment and get interest and fees reduced. My income is limited due to illness, I cannot work more that my current schedule to make more money. Can a debt settlement company help me at this point? A court date has been set for 16 days from now.

Hello, I wish I had better news for you but most debt settlement companies will not take clients with total debts of less than $10,000. In addition, the fact that a court date has already been scheduled means that you would need a lawyer at this point, not a debt settlement company as it is too late for them to help you out.

If you cannot get an attorney to assist you, depending on what state you are in, you should be real sure that you do not have the money to pay back the loan. A judge will likely evaluate not only your work situation but possibly also your assets in determining if there is a way for you to repay the money. The state laws come into effect here which is why you should at least make some calls to some local bankruptcy attorneys to see what your alternatives might be. Many bankruptcy attorneys can provide you with all types of debt assistance (not just bankruptcy) and you can often get a free consultation with them before deciding to become a client (if you mutually agree that it would make sense to become a client).

Sorry I don’t have a better answer for you but you need legal asistance and I am not a lawyer. Best of luck to you.