Can I cancel my debt settlement program if I plan on filing for bankruptcy instead?

You can cancel the program—there is no law or other legal bar preventing you from doing so. The question is, what are the consequences?

Presumably, you signed an agreement or contract with the debt settlement company before they began advising and representing you. If you did, then if you cancel the program, you may find yourself in breach of contract if the agreement did not provide for cancellation under certain circumstances. Even if it allowed cancellation, if the debt settlement company was fulfilling its obligations under the contract, they will be able to bill you for work done to date, possibly including a penalty or surcharge for early cancellation if such is in the contract. (Of course, if the reason you are cancelling is that the debt settlement company was not honoring or fulfilling its obligations, you may have a breach of contract lawsuit against the debt settlement company.)

However, while you will almost certainly not be able to get back amounts paid to date, if you end up owing the debt settlement company more money, they will become a creditor of yours—which means that your debt to them may be dischargeable in bankruptcy.

Before cancelling your debt settlement program, therefore, you should consult with a lawyer. The attorney can review the contract with the company, to see what your liability or obligations may be; the lawyer can also confirm whether you would be able to eliminate any new debt you may incur to the debt settlement company in the bankruptcy.

Talk to a Bankruptcy and Debt Settlement Lawyer to learn more about your options and legal rights.