Legal Question in Credit and Debt Law in Wisconsin

Yes, and "maybe." That is, you can indeed still be sued after a "credit card settlement" if the settlement is not final or if you do not have adequate written proof that it was intended as a final agreed settlement rather than a partial payment (or if you do not properly stand up for your rights later on if you are sued or placed again into collection by mistake). Although I am not sure what you are referring to when you ask about "credit card settlement," generally speaking, the law allows for any debt, including credit cards, to be settled for less than the entire amount due. However, this is unlikely to work out well for you unless all parties clearly agree to the compromised final lump sum payment and document this understanding in writing. Be wary of organizations holding themselves out as settlement experts, since a high percentage of them are scams. Instead, attempt to contact your credit card company on your own and make them an offer. If this fails, however, and you do employ a debt counseling agency, make sure that they are registered as a not for profit, charitable organization and properly licensed by the government. If their promises sound too good to be true or they employ high pressure sales tactics, you are probably dealing with a scammer. On the other hand, some debt adjustment agencies can legitimately assist people in reducing the amount that the need to pay in order to avoid being sued. But most of the time, credit reports will still reflect that the debt was compromised, adversely effecting credit scores. Since your credit could therefore end up being shot either way, you might wish to consider the ultimate �credit card settlement,� also known as bankruptcy. Either through chapter 7, where payment is rarely required, or in chapter 13, where some small percentage of the total is often required to be paid over three to five years, your credit cards will indeed be �settled.� This occurs through a federal court discharge order amounting to a legal forgiveness of the debt. Such orders are enforceable anywhere in the world by severe penalties against anyone attempt to illegally collect in the future. The difference in damage to your credit between bankruptcy and debt settlement may hardly be noticeable, since your credit may already have been severely damaged by a poor payment history before your took either step. You should therefore arrange for a free initial consultation with an experienced bankruptcy lawyer before considering most credit card settlement alternatives. My comments in this public web forum are intended only for public educational purposes and are not legal advice specifically for you. Instead, you should retain a lawyer in order to meet your legal needs since I will be taking no action on your case. You are welcome to contact my Racine, WI office at 262-633-3090 or email me at [email protected] for further information if you desire it.