Legal Question in Credit and Debt Law in Georgia
Creditor Complaint
Low on cash, I entered into an agreement with a debt settlement comp 5 months ago to negotiate with a creditor. The credit card comp filed a complaint for non-payment. I have no assets, but DO NOT want to file bankruptcy. I want this resolved so as not to further damage my credit. The debt settlement comp says they can still negotiate with creditor. I plan to respond to complaint, but should I seek legal help? If yes, what kind of lawyer can help? (Bankruptcy lawyers say they can't help.)
2 Answers from Attorneys
Re: Creditor Complaint
Most "debt settlement companies" are scams. There are only a handful of legitimate ones. If you want to try that route, avoid the folks that run lots of TV and internet ads and go with Consumer Credit Counseling of Atlanta (or the ones in Macon, Columbus, Albany, and Augusta).
However, once suit is filed, chances of negotiation go way down and the suit itself pretty much ruins your credit. Bankruptcy or payment are the only two things that generally can sidetrack a lawsuit.
Bankruptcy attorneys such as myself will generally be unable to help you unless you go that route.
A note: answer the suit in 30 days or less.
Re: Creditor Complaint
As stated, there is no mystery - paying the debt resolves the lawsuit and prevents further damage to your credit. Instead of looking for, and paying, a lawyer, perhaps that money can be used to pay the debt. Otherwise, it will follow you for a long time, with a judgment, garnishment of wages and bank accounts, potential harm in getting a job.
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