FAQ’s

Frequently Asked Questions and Answers

What is debt settlement?

Debt settlement is a method of handling debts which seeks to reduce one’s debts by getting creditors to accept less than the full principal balance.

What is the difference between Debt Settlement & Debt Consolidation?

A: Debt Negotiation/Settlement

Debt negotiation companies negotiate with a consumer’s lender to lower the total amount of debt owned for a one time settlement.  The clients monthly deposit goes into a savings account and when enough money has accumulated the debt negotiator will call the lender to negotiate a settlement for 1/2 the debt amount owned or better, which saves the consumer a considerable amount.

B. Debt Consolidation

Debt consolidation companies offer to combine various debts allowing the debtor to make one lower payment to the company, rather than many payments to different lenders. While debt consolidation can make paying monthly bills more manageable, some company tack on high fees and charge exorbitant interest rates, which means the consumer is paying much more in the long run.

How long will it take you to settle all of my debt?

This can vary based upon the dollar amount of the debt outstanding, number of creditors and available of funds to be used for settlements.  The plan can range from 12 to 48 months.  Usually the first debt can be settlement within 6-12 months depending on how their plan is set up.  Basically, you need 50% of your smallest debt to start the negotiation process. This is normally less time than if you were to pay off the debt on your own making minimum monthly payments.

How do I know that my creditors will settle with you?

We cannot guarantee that every one of your creditors will be willing to settle, however, we do have a very high settlement success rate in our office.

How is this program going to affect my credit?

As you go delinquent on your accounts, your credit score will start to drop. However, once we start settling up your accounts and your debt to income ratio starts to improve, you will notice your credit score start to go back up.

How do I know if my case will be accepted?

At the end of your free consultation, you will be advised if you case will be accepted. If you are someone  who is in debt and serious about resolving your debts and are currently working, chances are we can assist you.

Will I keep getting calls from creditors?

You may receive some calls. After you are enrolled in the program, you can direct your creditors to continue all communication with our office. We also will send out notification to your creditors that you are now represented by legal counsel and that all future communication should be handled directly through our office.

Will all of my debt be eliminated after I’ve finished the Debt Settlement Program?

Yes. If you follow all our procedures, you can expect to be free of all unsecured debt at the end of your plan. However, you will be continue to be obligated for your secured debts, i.e. mortgages, auto loans, etc.