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17. Will your Debt Consolidation Program stop legal action against me?

This question has two answers; both are correct but based on different factors.  First if the creditor wants to pursue legal action against a debt, there is nothing that can be done to stop them except at the conclusion of whatever legal action taken.  Now, if the creditor finds a way to get what they want without having to pay the large legal expenses, then they will most certainly take the easier route.

This brings us to Yes, legal action can be stopped with our debt settlement program.  Once legal action has been initiated, the only thing that will stop your creditor from pursuing the debt further is either payment arraignments or a payment to settle the debt.  An out of court settlement is the best thing for the debtor because it ends all legal action and the debt is paid in full.  Typically an out of court settlement will cost about 50% of the balance.  For example, if the creditor is suing for $10,000 then an out of court settlement can be reached for $5,000.

This often brings us to the question of why a creditor would even hire an attorney in the first place to sue a debtor.  It is standard policy for banks and credit card companies to turn over their bad debts to collection agencies and collection attorney’s.  It is the job of these bill collectors to due whatever it takes to get the debt paid.  If the collector feels that there is no chance the debt will get paid out of court, then they will hire an attorney to sue the debt.  But just because an attorney gets involved, does not mean that they are going to sue.  There are many Collection Attorneys out there that never sue debtors.  They operate just like a collection agency with a call center and call center reps called bill collectors. 

The success of Collection companies is based off of a numbers game.  If a debt collector makes 100 calls in a day, they will speak with maybe 20 people.  Of those 20 people, maybe one of them will make a payment towards the debt.  So you can see why it is necessary for bill collectors to harass debtors constantly; if they do not collect money, then they will not get paid.

If you are being harasses by debt collectors, FH Financial can stop those phone calls. Click here and complete the debt elimination form to get your life back.