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If the debt company holds your money and does not negotiate until funds accumulate what is stopping the creditors or collectors from taking legal action against you? How long is a creditor / collector going to go without getting paid before you end up in court ?

That risk always exists however, going to court is a costly and arduous process for the creditors so it is really a last resort for them. If they took everybody to court they would lose more than they stand to gain by engaging in the debt settlement process with consumers who are forced to go that route.

A good debt settlement company correctly evaluates your creditors, your debt amounts with each, and devises a payment schedule that minimizes the risk of legal action as much as possible. The settlement company should know the limitations of each creditor and they typically have the relationships established within the creditors negotiations departments to guide the process smoothly. Some creditors have less patience than others, a good settlement company will know this.

Lawsuits are really a last resort and are most common when creditors believe you have the money but just don’t want to pay it back.