Debt FAQ

The negotiation process has been tested and developed over years of experience by our team of professionals in the field of finance and credit card debt. Our professionals are highly skilled in each of their fields of expertise. Through many established creditor relationships and proven processes, we are able to successfully negotiate the debts of our clients at a substantial discount. Creditors are willing to negotiate a debt with us, on behalf of our clients, with the understanding that the settled amount will be paid in a timely manner. Furthermore, creditors are always looking to avoid the ineffective and costly efforts of an outside collection company. We continue to develop our relationships with creditors throughout the country, and we always maintain a very professional and cooperative relationship with the creditors in order to reach the most favorable settlement offer for our clients.

Q. Who is eligible for our program?
Q. How do you apply?
Q. How will you settle my debts?
Q. Who can join our program?
Q. Can I still use my credit cards?
Q. What will I pay for your services?
Q. Do you guarantee that you will settle all of my debts?
Q. Can I be sued?
Q. Which debts can be included?
Q. How long does it take to get debt free?
Q. Should I stop paying my bills?
Q. Do I need to answer the phone when my creditors call?
Q. What should I tell the creditor when they call?
Q. When should I write down information about the calls?



Q. Who is eligible for our program?
A. In general, we work with individuals who are in a state of financial hardship. A "hardship" is broadly defined and could be any number of financially damaging events—financial (loss of job), medical, personal (divorce), and the general economic environment. In short, any events or circumstances that have caused an individual to accumulate too much debt and lead to an inability to pay his/her debts.


Q. How do you apply?
A. Complete the form online. A debt consultant will review your information and call you to review your situation. After a debt consultant has reviewed your financial situation and hardship they will determine if you are qualified for our program.


Q. How will you settle my debts?
A. As you save money, our team of Attorneys negotiates with your creditors. Debts can be reduced to as low as 25% of what you owe. For example, if you owe $20,000 to your creditors, we can save you as much as $15,000! After each settlement, you will receive a "Good News Letter" containing legal proof that you owe your creditors no more money. In as little as 12-48 months you could be debt free and enjoying financial freedom!

Q. Who can join our program?
A. Our debt settlement program is a hardship program:
• have a financial hardship
• are struggling to pay their unsecured debts
• have little ability to make payments in the future
• are looking for alternative options for debt resolution


Q. Can I still use my credit cards?
A. NO. All credit cards in the program will not be active and you will not have credit privileges. Any cards you DO NOT put into the program should not be used. This program is for you to get out of debt.


Q. What will I pay for your services ?
A. You will pay a fee which is calculated based on the total amount of debt that an individual brings into the debt settlement program. All costs and fees are always fully disclosed and you are required to sign for approval before you commit to our program.


Q. Do you have a guarantee?
A. Yes.  It’s called our “Covenant Three Part Promise.”  Please ask your Covenant Debt Consultant about details.

For our 3 Part Promise Click Here for more information...

Q. Which debts can be included?
A. We accept most types of unsecured debt. This includes credit cards, department store cards, personal loans, medical bills, and accounts with collection agencies. We cannot work with student loans, mortgages, child support, and alimony debts.

Q. How long does it take to be debt free?
A. Our average client will be debt free in just 12-30 months. The time it takes to clear your debts is mainly dependent on your own financial situation. The more you can save each month, the faster you can pay your debts and be debt free. Some people are able to become completely debt free in just 8-12 months. Every situation is different and we will be happy to discuss your particular situation with you during our free phone consultation.

Q. Should I stop paying my bills?
A. We cannot answer that or advise you to stop paying your bills. You know your financial situation better than we do, and you need to determine for yourself whether you can afford to pay your bills or not. However, if you are unable to pay your bills because of other pressing financial matters or concerns, your creditors , or collections agencies, cannot harass you or contact you if they know you are represented by counsel and/or if they receive a letter advising them not to contact you.

Q. Do I need to answer the phone when my creditors call?
A. You don't need to answer the phone, but it's not a bad idea, especially when you first start receiving the calls. To maintain records of the calls, you will need to recognize the number to identify the creditor. Also, it is useful to obtain the name of the person calling you and who they represent. Sometimes collectors say they represent the original creditor when in fact they were assigned the debt and are attempting to collect the debt as a debt collector; this is a violation of the law.


Q. What should I tell my creditors when they call?
A. At the very least, tell them if you cannot afford to pay, but do not give them any more personal information than that. You can tell them not to call you anymore, that you're represented by counsel, and provide them our number if you wish. If they ask you if you refuse to pay the debt, tell them the truth and do not be afraid to do so. If you tell them you refuse to pay and to not call you, they must comply with your request. Then document it!


Q. When should I write down information about the calls?
A. Immediately! Keep the log, diary, or calendar next to your phone, or with you if they have your cell phone number, and make the entries in real-time. The most important information to gather is the date, time, phone number of the caller, creditor, name of the caller, and the context of the call (e.g. if the caller was rude, threatening, and/or harassing in nature).

Conclusion

We know that debt causes stress. You may not know which way to turn. You may be frozen and indecisive about the best choice. It's vitally important to make a choice and move forward so you can have relief.
If you continue to pay the high interest rates on your credit cards, think about how long this will take to pay off—virtually a lifetime!

With Covenant, you get to move on with your life and rebuild. You don't have the stress associated with rude collectors threatening you. You'll immediately have peace of mind to start living vs. worrying and losing sleep!