Legal Question in Civil Litigation in California

Being Sued-needing to file for Bankruptcy

We signed up with a debt settlement company, and despite following our 'plan', we are now being sued in 1 civil case, mediation in another, we've been charged-off for 1 account, we've settled and are almost done paying one co., we've maintained payments on our car loan, and one credit card co. because they've never raised our % based on our credit with other companies, and the debt settlement co. is still working with the other companies that have not yet filed suit, or charged off. With litigation looming, and by filling out a few bankruptcy surveys online, it appears that our best route would be bankruptcy as these companies seem unwilling to work within our actual ability to pay. Most of the companies are requesting 3-5x what our existing payments were when we stopped sending payments (under the advice of the debt settlement company) in the first place! I work a full-time job, and even with the current amount of payments we do make, it's hard to get by. After rent, car, utilities, and other debt payments etc. we have about $500 a month for groceries, (family of 5) emergencies, sundries, clothes, laundry etc.

A) What are our alternatives?and

B) Do we have any legal right to sue the debt settlement company (florida based)?

1 Answer from Attorneys

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