Learn About Your Debt Relief Options Can Debt Settlement Help You?
- Too Much Credit Card debt to keep up with
- You have experienced a financial hardship that has impacted your ability to pay your debt
- High Interest Rate Credit Cards and Late fees are increasing what you owe
- You are receiving Harassing Phone calls from a Creditor or Debt Collector for missed payments
- You don’t qualify for Bankruptcy or You don’t want to file BankruptcyYou have the ability to access or save funds to settle your debt
What is Debt Settlement?
Debt Settlement, unlike bankruptcy, is a process by which consumers attempt to resolve their debt with their creditors directly. Often times a consumer may have acquired more debt than they can handle and financial hardship causes missed payments, but the situation is not so extreme that it would warrant a bankruptcy filing. Other times a consumer may not qualify for a chapter 7 bankruptcy discharge and does not want to enter into a chapter 13 bankruptcy repayment plan. A consumer may not be interested in filing for bankruptcy, and have that reflected on their credit report, if it means they will have to repay a substantial amount of debt over time in the bankruptcy. Additionally, depending upon the creditors that the consumer owes money to, it may also be the case that a consumer would pay less over time in debt settlement than in bankruptcy. In such cases, debt settlement may be an appropriate solution. Unlike bankruptcy, debt settlement is not a legal administrative proceeding, but is instead a private negotiation with your creditors. Not all debts or accounts are eligible for settlement, and therefore it is recommended that you speak with one of our attorneys to evaluate your situation and discuss your options.
Stop Harassing Phone Calls - If you are like many consumers who are struggling with their debt, you are probably receiving harassing phone calls from your creditors. Once you retain Financial Relief Law Center with respect to your debt, we will send Cease and Desist letters to your creditors. Under the Fair Debt Collections Practices Act (FDCPA) and the California Rosenthal Fair Debt Collections Practices Act (CA FDCPA), unless you decide to initiate contact, collections companies are not permitted to contact you once you are represented by an attorney with respect to that particular debt and all calls must therefore be directed to your attorney. Collections companies are also not permitted to contact you at work, or contact your family members regarding your accounts. Violations of this provision subject the collections companies to statutory damages. This is a powerful tool to separate yourself from the harassment of debt collectors so you can formulate a rational plan to resolve your debt.
Obtain Debt Verification & Validation – One component of the FDCPA and CA FDCPA that protects consumers against unfair debt collections practices is the right of a consumer to request that the debt collector verify the debt. Once an account is sent into collections, the collections company will contact the consumer to obtain payment on the debt. This process can occur again and again from different collections companies because often times the creditor will continue to send the account to a different collections company several times if the previous company could not effectively resolve the debt. That means that a consumer could be contacted by multiple collections companies over time for a single credit card account. The debt collector is usually a 3rd party collector, and therefore, the consumer has probably not heard of this company prior to receiving the collections notice. The rights given to a consumer under the FDCPA allows the consumer to request that the debt collector send proof to the consumer that the debt collector has authority to collect on this account, verifying how much is owed on the account as well as the name of the original creditor. This right under the FDCPA allows consumers to protect themselves from companies who are fraudulently trying to collect money from a consumer which they have no right to collect upon. Debt verification is part of the debt settlement process at Financial Relief Law Center, and we will verify your debt each time it changes collections companies so that you have the peace of mind knowing that you are settling your debt with the proper authority.
Resolve Lawsuits with Payment Plans- One effect of not paying your creditors is that they can begin filing a collections lawsuit against you, these actions can result in wage garnishments, bank account restrains and property liens. If you have been sued by your creditor, you should know that it’s only a matter of time before they obtain a judgment and start trying to enforce that judgment against you. Most people cannot sustain a wage garnishment, which can legally garnish up to 25% of your net earnings per pay period. Therefore, it is imperative you act promptly to resolve the debt if you are sued. While filing for bankruptcy stops lawsuits, judgments and garnishments, it is also possible to still resolve a lawsuit and prevent a judgment and a wage garnishment by entering into a stipulation agreement with your creditor. This will require you to make payments towards that account, but you will have avoided both a bankruptcy and a judgment.
Customized Debt Settlement Plans: Each debtor’s individual situation is different. That’s why we believe that a customized review of your circumstances is needed before you decide to start settling your debt. Factors such as income, source of income, savings, assets, equity, amount of debt, where you bank and which creditors you owe money to, should all be evaluated prior beginning any debt resolution program. We provide customized approaches for debt settlement programs over 24 months and will guide you through the process of saving sufficient funds to resolve your debts in a timely manner.
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