If you would like to learn more about negotiating debt with your creditor, contact the debt settlement consultants at Debt Free Associates, today.
Creditor Debt Settlement FAQs — Answers from Experienced Debt Consultants
At Debt Free Associates, our debt settlement program helps clients avoid costly debt consolidation plans and achieve the financial independence they deserve. If you are being harassed by creditors, our debt settlement consultants are highly experienced leaders in the field who can help you to create a personalized, comprehensive plan to get you out of debt forever!
Frequently Asked Questions (FAQs)
If you are having a hard time paying your bills or are only able to make minimum payments our debt settlement consultants can help. For a free consultation with no commitment required, contact Debt Free Associates today.
- Who is qualified for our program?
- Who is not qualified for our program?
- How do you apply?
- How will Debt Free Associates settle my debts?
- Who can join Debt Free Associates' program?
- Is bankruptcy a better option for me?
- How will Debt Settlement affect my credit
- Can I still use my credit cards?
- What will I pay for your services?
- Can I be sued?
- Can Debt Free Associates stop my creditors from calling?
- Does Debt Free Associates repair my credit?
- Can creditors garnish my wages?
- Can I negotiate my debts with my creditors on my own?
- What are the tax consequences?
Who is qualified for our program?
Our debt settlement program is designed for those who are experiencing severe financial hardship and are unable to pay their debts, will likely not have the ability to pay their debts in the future, and are facing the possibility of bankruptcy. Qualifying financial hardships can include a loss of income, death of a financial provider of the household, a medical emergency, or a divorce.
Who is not qualified for our program?
The debt settlement program we have developed is not meant for those who have the means to pay off their debts. However, for those who find themselves unable to cope with mounting debt, we can many times successfully negotiate with creditors. Our debt settlement consultants will help you develop a reasonable payment plan and then, once a predetermined amount is set aside, negotiate your debt directly with your creditors.
How do you apply?
If you meet the criteria to participate in our program, and would like to apply, we encourage you to contact our team of debt settlement professionals. The experienced debt consultants at our office will review your information and contact you shortly for a complimentary introductory consultation.
How will Debt Free Associates settle my debts?
Our debt settlement consultants will carefully analyze your financial circumstances and work with you to determine a monthly amount that is in line with your total debt, income, and expenses. As soon as the trust account (this is the account that is set up for you when entering into our program) builds enough savings that will allow us to negotiate a settlement with one of your creditors (usually starting with the account that has the smallest balance and working up) in the program we will begin to contact your creditors. There are typically a number of phone calls between your creditor and our debt settlement professionals before a settlement is reached. Once this settlement is reached, we will present you with the offer and thoroughly discuss it with you. If you approve the settlement offer, we will have your creditor send it in writing.
Who can join Debt Free Associates' program?
Debt Free Associates debt settlement program is a hardship program. This program is only for people who:
- have a financial hardship
- are late paying their unsecured debts
- have no ability to make payments in the future
- bankruptcy is the only other option
Examples of qualifying hardships are a loss of income, medical emergency, death of a member of the household who provided financial assistance, or a divorce. If you are currently meeting your monthly debt obligations and are able to continue to do so, then our Debt Settlement program is NOT for you.
Is bankruptcy a better option for me?
Debt settlement is not a guarantee that you will not have to file for bankruptcy in the future. It is recommended that anyone considering our program also contact a bankruptcy attorney.
How will Debt Settlement affect my credit?
The purpose of Debt Settlement is to get you out of debt at a substantial settlement, not to improve your credit. There are many factors that need to be considered when assessing credit worthiness, including your total amount of debt, payment history, available credit, number of creditors, etc. For more information on how your credit score is determined visit www.myfico.com.
Can I still use my credit cards?
No, those who take part in our debt settlement program can no longer use their credit cards. All credit cards that have been included in the program will not be active. In addition, any credit cards that are not entered into the program should not be used. In implementing your debt settlement program, our consultant’s primary concern is getting you out of debt. Until this process is complete, credit card use will only compound the problem.
What will I pay for your services?
A fee equivalent to 22% fee is charged for our services. This fee includes a set up fee of $199. A monthly maintenance fee of $75 dollars for each month you are enrolled into the program and an enrollment fee that is equal to 10% to 15% of the total debt enrolled into our Debt Settlement program.
Can I be sued?
Yes, your creditors have the right to sue you to recover their funds. However, lawsuits are usually meant to force a settlement of the debt. It is our experience that most creditors would rather negotiate a settlement than go to court. Fortunately, you will have experienced debt settlement consultants on your side.
Can Debt Free Associates stop my creditors from calling?
No, Debt Free Associates cannot stop your creditors from contacting you. However there are laws enacted to help with harassment by third by collection agencies. It is important to remember that all collections agencies must adhere to principals laid out by the Fair Debt Collection Practices Act.
Does Debt Free Associates repair my credit?
No, Debt Free Associates does not provide credit repair services. Our goal is to settle your delinquent accounts.
Can creditors garnish my wages?
Yes, creditors will still be able to garnish your wages. However, this can sometimes be a long process for creditors. First, the creditor must sue you, obtain a successful judgment, and then file for a garnishment action. When a person is working with a creditor to resolve their debt, wage garnishments can sometimes be avoided. At Debt Free Associates, we negotiate with each creditor as part of your debt settlement program.
Can I negotiate my debts with my creditors on my own?
Yes, you can. However, it should be noted that the debt settlement process can be long and complex; most consumers benefit greatly from enlisting the help of experienced professionals. Our debt negotiation consultants have the experience necessary to negotiate with creditors on your behalf and successfully obtain debt settlements. With our comprehensive debt settlement services, you don't have to spend time and effort negotiating with your creditor for a sufficient debt settlement. Instead, you can rest assured that you have experienced professionals on your side.
What are the tax consequences?
You can expect creditors to report debts — either cancelled or settled — to the IRS if the amount exceeds $600. You are also required to report this amount to the IRS in your tax return. However, the IRS will permit you to write off income from cancelled debts up to the amount by which you were insolvent during that tax period. It is recommended that you consult your tax advisor in order to analyze your specific tax circumstances.
Contact Us Today
We are dedicated to helping our clients get out of debt. If you are being harassed by a creditor, the debt settlement program provided by our consultants can provide you with financial freedom and peace of mind. To learn more, simply contact Debt Free Associates today.
