The debt consolidation program is cheating you.

Answer Applies to: Michigan
Replied: 10/14/2011

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You are probably being sued because you are behind on the payment. You may want to consider bankruptcy as an alternative.

Answer Applies to: California
Replied: 10/3/2011

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Yes, they can sue you even if you are making payments. Call the lawyers and see if you can work it out with them but don't be surprised if they turn you down. Your options include filing bankruptcy so you might want to explore that option.

Answer Applies to: California
Replied: 10/3/2011

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When you get sued you need a lawyer. You have gotten a very good clue that you dealt with a fraudulent criminal to handle your debts and you now have a legal emergency. Many debt programs are fraudulent and you have created a mess by doing that instead of seeing a lawyer. You need a lawyer today.

Answer Applies to: Georgia
Replied: 10/3/2011

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Credit card companies don't have debt consolidation programs.You are probably using an outside debt consolidation agency that is merely receiving money from you with the objective of ultimately trying to reach a settlement with all of your creditors, whereby they accept something less than the full amount that is owed to them.If this is the type of plan in which you are participating, then the credit card company has probably not been getting any money, even though you have been paying money in every month to the debt consolidation company.Under these circumstances, you can certainly be sued because the credit card companies don't have any obligation to deal with the outside debt consolidation companies (and most of the credit cards refuse to deal with them). If, however, you are actually participating in a debt repayment plan set up by the credit card company (in writing) and have been making your monthly payments without fail, then you should not be sued by the credit card company. Good luck.

Answer Applies to: Virginia
Replied: 10/3/2011

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Even thought your currently paying, if u have a past due balance, the credit card company may be able to Sue u. Depending on the amount of your current undecided debt. , a chapter 7 bankruptcy my be a fine vehicle to clean up your credit and get a fresh start.

Answer Applies to: Wisconsin
Replied: 10/3/2011

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Yes, a credit card can sue you even though you are in a debt consolidation program. Debt consolidation provides no legal protection from creditors. In more instances, it gets you sued as you have displayed an ability to pay the debt. You'll need to answer the summons and be prepared to stipulate to a payment plan with the creditor who sued you.

Answer Applies to: Colorado
Replied: 10/3/2011

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Just because you are paying the debt consolidation company does not mean the creditor cannot sue you. The consolidation company generally holds on to your money, after paying their own fee, until they get enough to offer a settlement, which the creditor does not have to take. Read your agreement, I have never seen one that doesn't say that in the fine print. You will probably end up having a judgment against you if you cannot pay or reach settlement. Depending on how much other debt you have, you might want to switch from consolidation to bankruptcy.

Answer Applies to: Michigan
Replied: 10/3/2011

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Contact the attorney's office for the creditor who is suing you. You may be able to work out a payment agreement.

Answer Applies to: California
Replied: 10/3/2011

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A credit card company should not be suing you unless you are in default of your obligations under the credit card agreement. Contact the attorney for the creditor and your debt consolidator to find out what the problem is. Unfortunately, Some debt consolidators are fraudulent, but the creditor may have simply made a mistake. Many creditors do not agree to work with debt consolidators. If you are using a debt settlement company (and not a consolidator) and are making monthly payments, that almost never works and many debtors under such programs eventually get sued.

Answer Applies to: Colorado
Replied: 10/3/2011

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When you are paying a debt consolidation company, they generally do not pay any money to the creditors until they have collected enough monthly payments from you to settle. And your debt consolidation company is probably not an attorney and are not doing anything about the creditors collection efforts and lawsuits. You should get a refund from your debt consolidation company since they are obviously not paying your debt.

Answer Applies to: New York
Replied: 9/30/2011

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I suspect your "Debt Consolidation Program" was a limited forbearance which has expired.

Answer Applies to: Colorado
Replied: 9/30/2011

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You are not paying the bank. You are paying the debt negotiation company and not the credit card company. The debt negotiation company accumulates funds and then tries to settle the credit card balance when they have sufficient funds to do so. The bank does not have to wait since you are in default. That is why debt negotiation is generally a bad deal and it will end up in your getting a 1099C from the bank if you settle the debt (and you will have to pay taxes on the debt reduction). Contact the debt negotiation company to see if they have made any payments. Most likely they have not. You need to answer the complaint timely or a judgment will be entered against you. You might consider terminating your contract with the debt negotiation company and getting your money back (or as much as possible) and then trying to settle the lawsuit or filing for bankruptcy if that is an option. If you are really in a debt consolidation (instead in a debt negotiation program) then the debt consolidation company would be making payments to the credit card company and you would not have been sued. In a debt consolidation program you pay the entire balance and might get interest reduction and late fee waiver but in a debt negotiation is where they claim you will pay only a percentage of the debt (and that is subject to negotiation and acceptance by the bank). You need to know the difference and the cost of those programs before getting involved.

Answer Applies to: California
Replied: 9/30/2011

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You need to file a response to the lawsuit. If you have an agreement with a payment plan, they should not be able to sue you.

Answer Applies to: California
Replied: 9/30/2011

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Absolutely because the consolidation has no legal force. File Bankruptcy and be done with it.

Answer Applies to: California
Replied: 9/30/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.