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 qualified for our program?
Q. Who is NOT qualified for a debt settlement program?
Q. How do you apply?
Q. How will you settle my debts?
Q. Who can join our program?
Q. Is bankruptcy a better option for me?
Q. Does Debt Settlement have a negative impact on my credit?
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. Can you stop my creditors from calling ?
Q. Does this repair my credit?
Q. Can creditors garnish my wages?
Q. Can't I negotiate my debts with my creditors on my own ?
Q. Who is qualified for our program?
A. A debt settlement program is for people facing financial HARDSHIP. This means people who are struggling to keep up with their bills, are tired of making minimum payments, have little or no ability to pay their debts in the future and are looking for other alternatives for debt resolution.
Q. Who is NOT qualified for a debt settlement program?
A. Anyone with less than $10,000 in unsecured debt. However, for those who have greater than $10,000 and find themselves unable to cope with mounting debt, we can help. 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.
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. You will be asked to put aside and save a set amount of settlement funds on a monthly basis. This amount will be determined in your initial analysis based on total amount of debt and will be in line with your income and expense budget. Each person's situation is different and the negotiation process will begin at different times depending on the amount of your debt. Once the creditors agree to a settlement amount, we will present this offer to you. If you approve of the settlement, we will instruct the creditor to fax over the 'settlement offer' in writing. Then have a three way recorded conversation with you, the creditor and us to settle the account. Debts can be settled in two different ways; one lump sum or a term settlement. One lump sum is just that, one payment and the account is paid. A term settlement is a settlement which is paid over an extended period of time until the account is paid, then moves through each debt until all of your debts have been paid and you are debt free.
Q. Who can join our program?
A. Our debt settlement program is a hardship program. This program is for people who have over $10,000 in unsecured debt and:
• 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. Is bankruptcy a better option for me?
A. Anyone considering our program should also contact a bankruptcy attorney to determine if their situation warrants filing for bankruptcy. Using the Debt Settlement process does not guarantee that you will not have to file for bankruptcy in the future.
Q. Does Debt Settlement have a negative impact on my credit?
A. YES. Your credit score will decline due to entering this program. How much it will decline depends on your original circumstances. Most of the accounts you place into negotiation are likely to "charge off", which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. Settled accounts are positive compared to unresolved delinquent debts or bankruptcy. A high credit score is desirable to have, but if you have a financial hardship and are unable to pay your debts, then your first priority should be to pay your delinquent debts and get back on your feet financially.
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.
Q. Can I be sued?
A. YES. Your creditors certainly have the right to sue to recover their money. But usually the purpose of the lawsuit is to force a settlement on the matter. In our experience, most creditors would rather not go to the expense of suing and simply try to negotiate a settlement.
Q. Can you stop my creditors from calling?
A. NO. Your creditors have every right to try and contact you in order to collect a debt. However, we have been successful in eliminating most harassing telephone calls. If your account is in collections; collections agencies have to adhere to the FDCPA Guidelines. If you would like to learn more please read Fair Collection Practices Act. This defines when and how a creditor may contact you.
Q. Do you repair my credit?
A. NO. Companies cannot remove legitimate negative items from your credit report. Negative items will remain on your credit report according to the conditions imposed by the credit reporting agencies. The goal of a Debt Settlement program is to settle your delinquent accounts. When a delinquent account is settled this is reflected on your credit report. A settled account is better than an unresolved delinquent account.
Q. Can creditors garnish my wages?
A. YES. However, this is can be a long process for the creditors. The creditor first has to sue you, successfully obtain a judgment, and then file for a garnishment action. If you're willing to work with your creditors, wage garnishment can normally be avoided.
Q. Can't I negotiate my debts with my creditors on my own ?
A. 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 reductions. 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 |
