What is debt settlement?
A: Debt settlement is the process of contacting all your creditors and negotiating a lower settlement price than what you originally owed.
Will debt settlement work?
A: Yes. It is a more aggressive debt relief program but has proven to be effective for many people.
Will creditors still call me?
A: Yes. When you stop making payments creditors will start to call. We have ways of reducing or even stopping these calls altogether as part of our debt settlement service.
How will debt settlement affect my credit score?
A: Debt settlement will show up on your credit report and affect it negatively. The thing to remember here is you credit can always be fixed. Take care of the debt first.
What types of debt can be settled?
A: Most unsecured debt. Such as
- Credit card debt
- Medical bills
- Utility bills
- Judgments and defaults
- Bank accounts
- Wage garnishments
- Charge offs
- Late payments
- Commercial debt
- Debt collectors
- And more
What can’t be cleared with debt settlement?
A: Secured debt. Such as
- Car loans
- Federal student loans
- Federal and State taxes
- Equity lines of credit
- Property that may be legally reposed by the creditor
How do I pay for my settlements?
A: You make monthly payments into a trust. Once enough money is in the trust we contact one of you creditors and make them a settlement offer. If they accept we pay them from the trust.
Why not settle my debts on my own?
A: You could. However, most attorneys are more skilled negotiators and can get larger reductions, sometimes 40-60 percent. Also, why deal with the stress and time it takes to contact and negotiate with everyone when it can all be handled by an attorney.
Debt settlement is it right for everyone?
No. Debt settlement is an aggressive form of debt relief and not fit for everyone. Call our offices at 831-221-5022 to see if it is a acceptable choice for you.
Could creditors garnish my wages?
A: Not likely. Wage garnishment takes can be expensive and takes time. Most debt collectors just use it as a scare tactic to get you to make payment arrangements.
Debt settlement vs. credit counseling what’s the difference
A: With credit counseling you payback all your debt plus interest and fees. Debt settlement allows you to only pay back a portion of what you owe, usually 40-60 percent less.
Will debt settlement affect my taxes?
A: Yes. The IRS considers any money you save as result of reducing the amount owed as income. Creditors will issue you a 1099 and you will have to pay taxes on the money you saved. That’s the key to looking at debt settlement, who cares if you have to pay a few bucks in taxes, the amount you saved is a lot more.