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Debt Negotiation Program Questions & AnswersAt CreditDebtSettlement.com we strongly believe in providing honest and accurate information with full disclosure in regards to every affect and aspect of a debt settlement and negotiation process and program. The following questions and answers below are designed to provide a clear outline of the program and assist individuals with a better understanding of the service it provides. A debt settlement company will negotiate on your behalf with your creditors to reduce the overall debts in exchange for an agreement upon regular payments to be made. Only unsecured debts (see qualifying debts) can be negotiated through this debt reduction program. For the debtor this makes obvious sense. They can avoid avoid the controls of bankruptcy while still lowering, sometimes by as much as 80%, their debt balances. The same appeal applies to the creditor. They regain trust that the borrower intends to pay back what they can and not file bankruptcy, in which case the creditor risks losing everything owed to them.
Since 2000, we have been providing honest and caring help to all consumers in need of debt relief. As a certified member of TASC (The Association of Debt Settlement Companies) all clients receive the best service and results. With a proven track record, accreditations and the highest consumer rating, Credit Debt Settlement is the best choice for a piece of mind and guaranteed results.
If you are going to work with a company, make sure the company provides you with a Written Money Back Guarantee. While we have been doing this for years, it is rapidly becoming the law in many states. Credit Debt Settlement guarantees that the total amount paid back to all creditors, including all fees, will be less than the total amount due to the creditors upon entering the program or all services are free.
Back to TopThis will vary for each case. Sometimes, debt settlements are reached and documented in as little as a few months. It will depend on how behind in payments you are, the creditors, what kind of money you have set aside to fund any settlements and what your financial goals are. Typically the process takes between 12 and 36 months.
Back to TopThe first thing that needs to be addressed
is your situation. If you are current with your bills and have a
good credit rating, settling your debt may not be the right
solution for you. Debt settlement is designed for individual who
are behind and cannot afford to pay their creditors. For most
consumers that will greatly benefit from the program are in a
situation where credit is not an immediate concern.
Back to TopAbsolutely. Once your debts are paid off, you will be able to rebuild your credit. Your debt to income ratio will be dramatically improved and if a paid in full letter is obtained from the creditor, your credit report will not show signs of debt settlement.
Back to TopIt has been done and you can certainly try. We have prepared detailed information and instructions for individuals looking for Do It Yourself Debt Settlement.
Back to TopAbsolutely. Your financial and personal information is not shared with anyone other than the professionals in our network that will be working with your creditors on your behalf. Do keep in mind that in order for us to negotiate with your creditors, you will be required to provide us with authorization to contact, negotiate, obtain and share information with each of your individual creditors for the purpose of negotiation.
Back to TopAfter the negotiation process is completed and the agreed settlement amount is paid in full to your creditors, any settled or cancelled debts that exceed $600.00 are reported to the IRS by your creditors. When filling your annual tax returns, you are required to report the same amounts as income. The IRS does permit a write off, up to the insolvent amount of income from cancelled debts. We suggest that you schedule a consultation with an accountant for advice pertaining to your specific situation.
Back to TopNo, not the ones you intend to settle. Most consumers entering a debt negotiation program are usually behind and maxed out and no longer have use of their account to begin with.
Back to TopUnfortunately the creditors retain the right to pursue collection contact you by any means in order to collect the money you owe. However, we have been very successful in utilizing certain techniques in order to minimize creditor harassment and eventually eliminate the headache of hassling creditor calls. Keep in mind that when you have an account in collections, the collections agencies have to abide by the FDCPA Guidelines. If you would like to learn more go to: Fair Debt Collection Practices Act
Back to TopAlthough creditor retain every legal right
to sue individual for not paying their debt, these types of
lawsuits are much less common than most would consider. It costs
the creditor too much money in legal fees to bring a lawsuit and
does guarantee collection of money owed.
Back to TopThere is the possibility but the chances are usually pretty slim. This is a long and tedious process for the creditors because they have to successfully sue you and obtain a judgment before they can begin to file for a garnishment. As soon as you show willingness to work with your creditors, the process of a lawsuit and the attempt at wage garnishment can easily be avoided.
Back to TopThe first thing to consider is that a debt settlement program does not cost anything but rather saves consumers money versus what they owe to the creditors. Generally the fees are based on the amount of debt and negotiation results. Most of the people who select our service do so because of the low fees, commission based savings, great reputation, industry associations and written money-back guarantee. All costs and fees are always fully disclosed and you are required to sign for approval before you commit to the program.
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Debt Settlement FAQ's
After reviewing
the debt settlement program FAQ's below, please feel
free to contact us with any additional questions or for further information.
One of our debt specialists will be happy to assist you with answers,
advice, a free debt analysis and consultation.
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