Luray Debt Relief FAQ’s
Will late fees and additional interest still accrue on my accounts?
Yes. Most of the fees and interests you are obligated to pay are still added to the debt payment plan. Some of these fees include late fees and interest, which would be continuously added until the amount is charged off. However, these amounts will not be visible in the long run once our debt settlement program is active. Our program aims to reduce the debt payments to a manageable amount less than the total debt regardless of the fees and interests included in the total amount.
What if my creditors won’t settle?
It is a rare occurrence for a creditor to reject debt settlement offers. The reason for this is that credit institutions are made to gain profit. If any debtors are unable to pay their dues, the company will do its best to at least get a fraction of the amount owed rather than not receive anything at all.
If they do deny a settlement, creditors may offer a counter-proposal to get more of the debt owed while still agreeing to a debt settlement.
Will debt settlement leave a negative impact on my credit history?
Yes. When debt settlement happens, creditors charge off accounts with outstanding debts. Once an account is charged off, it will be reflected in your credit history. If you plan to fix your debt, you should be aware that you will not be able to carry through your original credit agreement.
Fortunately, there are ways to help you rebuild your credit rating. When you finished paying off your debt, the creditor will notify all credit institutions to let them know you finished paying off your balance. By that point, you can slowly start improving your credit history by paying your debts early and others.
Will I continue to get calls and collection letters from my creditors?
There is a high possibility that you will still get calls from your creditors. But, if you entered into a debt settlement program, they may be more considerate when it comes to reaching out to you. They may only call you to ask for updates while working with us, your debt relief company. If you are experiencing constant creditor collection harassment, we can give you tools to deal with them effortlessly.
Will this program stop all legal actions against me?
No. If you are under a debt settlement program with creditors, creditors are still allowed under the law to take legal action against you even if they will be more understanding about your financial situation. With this said, you may still get a lawsuit at any given time during the debt settlement proceedings.
We can assure you that our debt settlement program will continue to resolve your debt even if legal proceedings are ongoing. We will do our best to negotiate your case before, during, and after a lawsuit, enabling you to stay focused on your goal of resolving your debts as fast as possible.
It can be nerve-wracking to deal with lawsuits, especially if it involves your debt. If you find yourself facing a lawsuit related to your debt, contact a lawyer specializing in debt law to help you deal with the case. On our end, we will continue with our efforts to help you with your debts.
Who is qualified?
Those who are experiencing financial difficulties and affected by their debt payments are qualified for a debt settlement program. This means that if you are only struggling with a few late payments or if you are someone who can’t pay any amount for their debt, you do not qualify for a debt settlement program.
How do I apply?
You can apply to our debt settlement program by completing our online form. Once we receive your application, one of our debt specialists will evaluate your application and contact you if you are eligible for our debt relief program.
What will I pay for your service?
Our service fee is included in your monthly payment plan. The service fee depends on the total debt amount that will be resolved through the debt settlement program. All the fees will be disclosed to you before you sign with us as your debt relief partner and start the process of helping you with your debts through our services.
When I enroll in the program, what will happen to my accounts? Will I still be allowed to use them?
If the canceled debt in the debt settlement plan goes over $600, the creditor is mandated to report this to the IRS while the debtor should include this amount in their tax returns as “income.” However, if at any given point the debtor is considered unable to pay, the amount can be written off. Fees and interests will also be deducted to the full amount if you are not insolvent during the period.
Check www.IRS.gov Publication 908, Form 982 for more information.
Can I still use my credit cards?
No. It is best that you do not accumulate any more credit because it may affect your chances of getting a debt settlement. All your accounts that are included in a debt settlement are frozen until the debt is resolved.
Call Optimal Debt Solutions at (615) 502-4182 today for your Free Evaluation!