What happens to your Debt Management Program if the credit counseling company that managed your debts shuts down? A counseling agency that is going out of business may send you a notice telling you that your Debt Management Program is being transferred to another company. Or it may tell you that you need to take some action to keep your financial recovery on track. If a government agency has filed an action against your credit counseling company, you may get a notice from a third party. If you discover that the organization handling your Debt Management Program is going out of business you need to:
If payments are late because the organization handling your Debt Management Program has failed to make scheduled payments, the consequences can be just as devastating as if you failed to make payments to the Debt Management Program. If you do not act quickly to make arrangements with your creditors, you could incur late charges that increase your debt, lose the lower interest rates associated with the Debt Management Program, and have “late” marks on your credit report.
