I am being sued by a credit card company for approx. 20k. I am currently enrolled in a debt settlement program, but was sued by the company anyway. I am responding to the summons and making a motion to compel arbitration (as advised by the debt settlement company). I have been told that the credit card company will win the judgment, but I am wondering what I should try to do. I want to avoid wage garnishment if at all possible, but do not have the money to make a large settlement offer. I am a singe mother and rent my apartment. I don't really have anything for them to take, but I do want to settle my debts. The reason I enrolled with the program was to clear my debt and be debt free at some point. I want to take responsibility, but I don't know what my best course of action is... Any advice would be greatly appreciated. Are payment plans an option? Will the judge possibly reduce the amount I owe since a good deal of the money they are suing for is ate fees and penalties? Is it worthwhile to try to set up a payment plan with the lawyers? Does being enrolled with a debt settlement company do me any good in this situation? So many questions...

Hello heavy:

Sorry for your problems..

If the debt settlement company you are using is looking out for YOUR interests instead of THEIRS, it'll help you. But, if they're ripoffs, like MOST of 'em are, they're only going to help themselves...

No, the judge will award them a judgment INCLUDING interest, late fees, and court costs. He doesn't care that you can't pay, or why.

The ONLY thing you can do, is make them a cash offer. If you can come up with, say, $5,000, I'll bet you can make your $20,000 problem disappear. Before you pay them, however, get the settlement IN WRITING.

excon