I am desperately seeking any helpful tips on how to proceed - I am working with a debt reduction company to negotiate lower amounts on my credit cards and have successfully done half of them; however, I am being sued by one who did not offer a settlement. The debt company has my power of attorney and tried to work out a deal with them for me to pay the debt at something I could afford - $500 down and $200 a month for 3 years. They came back with $700 a month, which I cannot afford. So now I have to reappear in court - not sure where to go from here. I do not want to pay to hire a lawyer but afraid I will have a judgement defaulted against me and my wages garnished. Help!

You have to work out a mutual compromise; if that is not possible, contact a lawyer who is competent in Chapter 7 and Chapter 13 bankruptcy.

First a credit card company or other person who you owe a debt to, does not have to work with the debt reduction company, and in fact the debt reduction company does not do anything you could not have done yourself, only they often have contracts or arrangements with many credit card companies already in place.

And if you actually owe the credit card company, and if you are properly served notice of the hearing, there is little you can do to stop a judgement. So if you can't do the deal they offer and they don't offer anything else, they have a legal right to sue you and get a judgement.

You may look into bankruptcy or see if you can find a way to do the additional monthly, esp if you live in a state where they can garnish your wages,