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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » I went with a debt consolidation company and still received a summons from a creditors. WHY??

I went with a debt consolidation company and still received a summons from a creditors. WHY??

The creditors were all given letters saying to work with this firm and I’m paying them monthly to work toward my debt. But I received this summons anyways. Can they still garnish my wages over and above what I am paying the consolidation company? I have no wiggle room in my budget.

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6 Responses to "I went with a debt consolidation company and still received a summons from a creditors. WHY??"

  1. snwbm says:
    yes, they can, they don’t have to listen to you or the debt consolidation company when it comes to recovering their money. They can use any legal means nessessary.
  2. Colin_Waft says:
    The best thing to do if you are based in the UK is to get an IVA (Individual Voluntary Agreement). It affects your credit score (you won’t be able to get further credit for the next five years) but you will be able to pay off 25% of the existing debt over five years and it stops all the interest payments.

    The IVA is run through insolvency pracitioners and they work on your behalf to secure deals with your creditors. That will also stop the summons letters.

  3. Gerald says:
    There is no wiggle room when you fail to pay your creditors…I quess they prefer to take you to court and get their money. first…Could be going to get criminal charges.. Consolidation companies cannot guarentee cooperation creditors.
  4. Bill C says:
    Most creditors, especially credit card companies, will not work with debt consolidation companies. They will only work with attorneys. The debt consolidation company should have told you that your creditors could still file suit.

    Wage garnishment can happen only after the plaintiff wins and gets a judgment.

    You need to fire the debt consoldation company, get a 100% refund and hire an attorney who has experience handling consumer debt issues. You can get a referral from your local county bar association.

  5. Marcus says:
    hi there! just take your time and go through this lot, you are bound to find what helps you out!
    http://credit—card.org/all_your_questions_answered.html
  6. OC1999 says:
    It depends on the company. Some creditors will not accept offers from debt colsolidation companies. However, if this was the case the DCC should have responded back to you stating this and not continue to take money for that creditor. The other thing that may have happened is that if you just started the program, filing a suit may have already been too far in to stop it so you got served anyways.

    What ever you do, you MUST go to court, if you don’t you could have a judgement ruled in default against you. I would keep all of your paperwork and when you go to court show the judge that you are making payments to the Debt consolidation company. If the creditor is accepting the payments the judge will probably(but not guaranteed) rule in your favor.

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