Posted on
June 25, 2009
at
12:05 pm
"A creditor will never seize your property or drag you to the court." Shane- that is 100% false. In fact, all creditors reserve the right to pursue legal action against a debtor if they are behind on payments to try to collect the debt. While it is not common, some debtors have had to appear in court to try to resolve the issue in front of a judge. And, if the debt is left unresolved after a lawsuit has been filed, a creditor can get a judgment against the debtor and attempt to execute that judgment to satisfy the debt. One way they can execute a judgment is through a property lien. And in some states (depending on state laws), the creditor can even force the sale of the property, and use the proceeds from that sale to satisfy the debt. A debt settlement company cannot prevent legal action from happening. What they can potentially do is resolve the debt through a settlement or payment plan before the case ends up in court or before the creditor attempts to execute a judgment.