Legal Question in Credit and Debt Law in California

You are finding out one of the biggest disadvantages of debt management plans. There is no law that says creditors have to accept anything less that full payment. Some creditors such as American Express or Capital One won't even negotiate with a third party. The credit card company may sue and THEN try to settle. You are probably better off hiring a bankruptcy attorney. Debt management plans and debt settlement plans are usually more expensive and more harmful to your credit thank bankruptcy.

Oops I guess your debt management company forgot to tell you since they aren't lawyers they can't defend you. If you got a summons you had better get a lawyer ASAP or file an answer within the prescribed time or your will have a judgment against you whether or not your debt company is still negotiating on your behalf.

I would fire them and go to a lawyer who does debt relief as you will be better protected. A lot of times the creditors can refuse to deal with these companies, but they can't refuse to deal with your lawyer. Besides you will probably pay them as much as you would pay a lawyer by the time it is all done.

Good luck and don't forget to get an answer filed or you will get a judgment against you.