The law allows creditors to file lawsuits against clients who aren’t paying off their debt, and choosing the option of debt settlement may increase your chances of being sued, or at least receiving threats of litigation. Still, there are so many account delinquencies each year that lawsuits to collect are not as common as you may think. In case litigation threats actually lead to a lawsuit, any potential savings you’ll get on settled debt will be minimized, while a court-determined payment plan may damage your ability to save money and settle other debts.