Posted on July 30, 2009 at 10:54 pm Today I get a letter from my credit card company saying they were dropping me from my debt management program.I mean the credit card company said they were removing themselves from my debt management program because I missed 2 payments.Yes,I did miss 2 payments only because my debt counselor said not to send anyone any money.So I didn't. Then I call my debt management program and asked explained the letter and they said why didn't you send them money and again I explained I was told not to.Then they said they didn't receive a proposal back from the credit card company.It makes no sense.I am paying the debt management company to help pay off my debt not get me deeper and deeeper in debt.I am so scared this credit card company will take me to court.I am soo scared!

Posted on December 8, 2009 at 1:05 am Hi, sorry for the late response. I wonder how you're doing now. Anyway, I think what happened there was you've chosen the wrong credit counseling agency. It was already a good thing that your creditor accepted your repayment plan but your counselors had to give you a bad advice.Anyway, not unless you receive a notice from the creditor/collection agency that a legal action is going to be taken against you, there's no reason to panic. You are going to be given time to respond to it.

Posted on December 8, 2009 at 1:22 am It has been months since that incident. Here's how credit companies deal with delinquent accounts such as yours:-they would try to collect on the full amount for 5 to 6 months-they would write that debt off to the IRS (mandatory)-they would pass your account on to a third party collection agency to try to collect at least portions of that debtAnd that should be good news for you (especially if your debt is $10,000 or more) because the collection agency would be willing to settle your balance to more or less half of the original amount.

Posted on December 8, 2009 at 1:43 am To further lessen your fear, speak to a financial expert or a debt consultant. Incidentally, destroydebt.com offers a free initial debt consultation, just fill out a form.And just to add to what they've said, if you're taken to court, your creditors are aiming at getting a judgment against you. A judgment could mean any of the these three: wage garnishment, bank levy, or property lien. No, you won't go to jail for not being able to pay debt. The court would just somehow find ways to make you pay - and if you really can't, meaning you're "insolvent" then perhaps you're off the hook.Otherwise, you'd pay in installment with the amount that your income can afford.