Getting sued for debt relief
Some debt settlement companies will tell you that once you’ve signed on for their services, it’s OK to stop paying your creditors if you can’t afford it. This is risky advice: Not only will you continue to accrue interest and late fees on your creditors’ debt, but it’s also not uncommon to deal with ensuing calls from collection agencies harassing you about your debt.
If you don’t pay your creditors over too long a time, you could end up being sued. If you lose the lawsuit but can’t pay up … well, you could have your wages garnisheed or land some expensive fines.
Better debt settlement companies can connect you with legal services to avoid such problems, but not all do. Remember that you’re not guaranteed you’ll win a settlement. Avoid any debt relief company that says otherwise.