Will late fees and interest
still accrue on my accounts?
Answer:
Most creditors will continue to charge
interest until the account is charged off (3-6 months)
However, your personalized program will reflect those
fees and/or interest, and is incorporated into the Settlement
Program. Even if fees are added, we negotiate the debt
down to a fraction of what you owe so your savings are
much greater than the addition of interest or late fees.
Creditors rarely have a problem settling because they know that if they do not accept a settlement, even for a fraction on the debt, they will likely not receive any payment on the account whatsoever. They would much rather accept less than the balance than risk losing the account all together by you filing bankruptcy. In the unlikely event that a creditor will not settle with our offer, they will still be willing to work out a payment arrangement or counter offer that will benefit you.
Does Debt Settlement have a negative
impact on my credit
Answer:
YES. Most of the accounts you place
into negotiation are likely to "charge off",
which will reflect negatively on your credit. When a
settlement is complete the creditor should notify the
credit bureaus that the account has been settled and
will reflect a zero balance at which time, you will
begin to rebuild your credit rating.
Will I continue to get calls and
collection letters from my creditors?
Answer:
Most likely, yes. Most original creditors
are cooperative. Calls may reduce after the original
creditor realizes you are working with us. It is important
that you review the section on how to handle creditor
calls in the program kit you receive as a new client
to minimize creditor harassments and keep in contact
with your account manager to make them aware of any
collection attempts by the creditors.
No - creditors have the right to use
legal means to collect a debt. Some creditors are more
likely to file suit than others. In our experience,
a small minority of consumers are involved in lawsuits.
However, it is a common tactic of third-party creditors
or collection agencies to threaten you with a lawsuit
(which is illegal if they do not intend to sue). Third-party
creditors or collection agencies sue less frequently
than original creditors. While we cannot guarantee that
legal action will not be taken, we are confident that
our experience in dealing with creditors can reduce
the possibility of this happening. Despite any legal
action that may or may not be taken, your account can
be settled before, during or after the suit. Just because
an account goes to legal action does not mean that we
cannot settle it. The threat of legal action can be
the scariest of all. IT CAN BE HANDLED. Sometimes a
single lawsuit is not a bad thing because it may give
our negotiators leverage to settle your other accounts.
We recommend that our clients seek competent legal counsel
in certain situations.
Note: We cannot provide you
with legal advice. However, we work with your creditors
in an attempt to make a settlement even when legal action
is pending.
A debt settlement program is only for
people facing financial HARDSHIP. This means people
who are late on paying their debts, have little or no
ability to pay their debts in the future and are facing
a possible bankruptcy.
Complete the form online. A debt consultant
will review your information and call you to review
your situation. After a debt consultant has reviewed
your financial situation and hardship they will determine
if you are qualified for our program.
You will pay a fee which is included
in your monthly payment and is based on the total amount
of debt enrolled. All costs and fees are always fully
disclosed and you are required to sign for approval
before you commit to our program.
When I enroll in the program, what
will happen to my accounts, can I still use them?
Answer:
Original Creditors are required to
report canceled debts exceeding $600 to the IRS and
you are supposed to report the same as income on your
annual tax return. However, the IRS permits you to write
off any "income" from canceled debts up to
the amount by which you were "Insolvent" at
the time. Therefore, unless you have a positive net
worth, then you ordinarily will not be obligated to
pay taxes on the forgiven amounts. Additionally, if
you do not qualify as insolvent non principal amounts
such as fees accumulated on the account may be deducted
from the amount reported. Refer to: www.IRS.gov Publication
908, Form 982.
All credit cards in the program will
not be active and you will not have credit privileges.
Any cards you do not put into the program should not
be used. This program is for you to get out of debt,
so it would only benefit you to discontinue using them.
"I just wanted to write to say thank you for all your help. It’s been a nightmare having these collectors call and harass us every day! It was finally time for me to accept the responsibility and take care of these debts and I’m glad I found you to help, so again, THANK YOU!"
Sandra
LaPlante
"Hello,
I just want to let you know how much I appreciate
your organization and how you've helped me. It feels
great to know that in only 9 more months I will finally
be DEBT FREE!!! "
Cynthia
"I
Can't thank you enough for all you have done! It's
nice to know I finally have this situation under control
"
