1Why isn’t my monthly payment into the program distributed to my creditors?
Creditors will only consider accepting a settlement on debt that has already defaulted. In most instances the defaulted debt is sold to a collection agency or an attorney. The harsh reality is, the older the debt, the easier it is to settle and the better the actual settlement amount. Distributing your monthly payment to your creditors takes away our leverage and the ability to get you the best settlement possible.

2What if I receive a legal notice of intent to sue?
Communicating with us is extremely important. In the event you receive any type of legal notice, it is important we are informed immediately. The sooner we are made aware of a problem, the sooner we can resolve the situation. Keep in mind, creditors will do everything possible to avoid forcing a borrower into a bankruptcy situation. It is in their best interest to get something as opposed to nothing.

3How will this affect my Credit Score?
If you are already 90 plus days late on your payments, your credit score has already dropped. Around 35% of your credit score is determined by payment history but reality dictates if you are not paying your creditors, your ability to get future credit has diminished greatly.

4How long will it take my credit score to recover?
It is difficult to say for certain. As a rule you will probably be denied new credit while you are in the program. Once you have gotten all your debts to zero, there is a good possibility you will have access to new lines of credit but be careful as you will still be considered a high risk borrower and therefore be penalized with high rates.

4My creditors want to offer me an alternative to Debt Settlement.
Your creditors will continue to call you regardless of the fact you enroll into a debt settlement program. They will in fact try to intimidate you with threats of legal action, bargain with you and even plead with you. They have trained personnel to do this exact thing. Time and time again we have had clients that have fallen into the trap of negotiating with their creditors and being set up on a new payment plan. Keep in mind if you are late just once on this new plan, you return to where you were prior to the new deal. Also keep in mind, this is usually offered on a limited term basis meaning it is perhaps good for one year if that. Resolving your debt issue is not going to be easy but after 3 to 6 months into the program, you will start to see the benefits and eventually you will start to appreciate the fact you are going to be living a debt free life.