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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12002
Experience:  JD, MBA
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I have been paying a debt-relief company for over three ...

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I have been paying a debt-relief company for over three years. Can I cancle their services and still get any remaining money they have save for future negotiations with remaining creditors. Also, what are the remaining creditors recourse after we remove the debt-relief companies Power-of-Attorney? Such as; will we bue sued in court? Can we negotiate with the creditors directly?

Hello and thank you for allowing me to address your legal questions. I’ll take them in order:

Can I cancle their services and still get any remaining money they have save for future negotiations with remaining creditors. This will largely depend on the terms of your contract with the debt-relief company. Is there a cancellation clause in the contract, and is there any mention of any damages for terminating the contract? Generally speaking, I would assume the money you gave to the company to pay your creditors is still considered your property. If so, then you should be able to request it all back, less any agreed upon damages in the contract. Before doing anything, I suggest you read all the paperwork associated with the company.

Also, what are the remaining creditors recourse after we remove the debt-relief companies Power-of-Attorney? Such as; will we bue sued in court? Can we negotiate with the creditors directly? The creditors always have the right to sue you in court when you default on an obligation, and the fact that you were working with a debt-relief company didn’t prevent you from being sued. You can also negotiate with your creditors directly rather than going through a debt-relief company.

I hope I've been of help with regard to your legal questions. Good luck!

If the information that I provided was helpful, please remember to ACCEPT my post as that is the only way I will receive credit and compensation for my answer. However, please understand that my answer is meant for informational purposes only and is limited by the facts presented. Therefore, it should not be construed as “legal advice” and is not an adequate substitute for the retention of legal counsel. Thank you and good luck!

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