Call Us Today! 1-877-570-1313

Can I Get Sued Doing a Debt Settlement Program?

This is a common question and rightly so! The thought and risk of getting sued doing debt settlement is scarry to anybody. It is always possible that your creditors could sue you as you go through debt settlement but with a reputable debt settlement company representing you, the risks are often greatly diminished. Typically it is more of a scare tactic than anything else but still any potential for a lawsuit is something to take seriously.

But Why Is It Unlikely?
The reason lawsuits are not more common is because every lawsuit costs the creditors lots of money. In many cases they would rather avoid this and take whatever money they can get from you to repay your debts. Each creditor handles their past due accounts differently but a reputable debt settlement company will have established relationships with your creditors and that is often the best defense against the possibility of a lawsuit.

Furthermore, debt settlement companies with lots of experience will know which creditors are more likely to sue based on their past experience. They should closely evaluate your situation before you become a client and they will let you know. This is why it is so important to use a debt settlement company that is honest and straightforward.

The best advice I can give is to make sure you ask this question as you decide if debt settlement is right for you and in particular, which company you hire to work on your case. I’ve discussed lawyers roles within these companies here.