Legal Question in Credit and Debt Law in New Jersey

I am not aware of all of the facts in your situation and the following should not be taken as legal advice. However, I will make some general statements on the applicable law.

It is admirable for many debtors to enroll in debt management programs. However, participation by creditors is completely voluntary. The Court cannot order the creditor (often credit card companies) to participate in the debt management solution. Often these creditors will get civil judgments so they can collect on their own (often through bank levies or wage executions). While a creditor can present evidence of debt management in Court, it will often have little to no effect. The only way it may help is if the judge tries to get the creditor to settle. If a debtor does in fact owe the debt, it is often advisable to settle for an affordable monthly amount. Often creditors will provide a discount for agreeing to make payments. Debtors should settle if possible, because if they don't and the Creditor's attorney performs a bank levy, the Debtor may be unable to keep current on other bills.