Legal Question in Credit and Debt Law in New York

Re: Debt Collection

Each case is based upon its own facts. You can do research at the law library at your county courthouse to see general forms of answers that may or may not be applicable to your situation.

As you have seen a major problem with so called Debt Resolution or debt settlement is (1) it is entirely voluntary and non-binding on creditors -- if they still want to sue you they will and the fact you are in a debt settlement program doesn't help you, and (2) unlike bankruptcy there is no automatic stay that prevents creditors from pursuing collections, filing lawsuits, or enforcing judgments (such as wage garnishment or levying on bank accounts).

Unfortunately, the debt settlement companies are so busy "selling" their product they don't seem to adequately disclose this. However, at the same time they tend to overstate the negative aspects of personal bankruptcy. Our bankruptcy clients who come to us after failed attempts to work with debt settlement companies are often shocked that judgments were entered against them while they were in debt settlement.

For more information regarding debt and collections issues, as well as personal bankruptcy matters, please feel free to visit the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com/faqs.htm.

Nothing in this response to your posting on Law Guru is intended or should be considered as legal advice to your specific situation. Our posting is intended to provide general information of interest to the public. Facts relevant to your situation and not disclosed in your posting may affect your specific legal rights and remedies.

Good luck with your legal matter.