When we have negotiated a reasonable settlement offer, we will present this offer to you. If you approve of the settlement, we will have the creditor draw up the 'settlement offer' in writing. Debts can be settled either in a one lump sum or a term settlement. A lump sum is just that, you pay a single payment and the account is settled. A term settlement is a settlement which is paid over an extended period of time until the account is paid as agreed. We then moves through each debt until as your funds become available until you have graduated from the program debt free.
Who is a good candidate for debt settlement representation?
Our debt settlement representation is a hardship program. Debt settlement is intended for those who:
If you are currently meeting your monthly debt obligations and are able to continue to do so, then our representation is not for you.
Will the debt settlement program have a negative impact on my credit?
Yes, your credit score will be negatively impacted by debt settlement. How much your credit is affected is dependent on your original circumstances prior to enrolling in a debt settlement program. Most of your accounts in a debt settlement program will be “charged off.” This reflects negatively on your credit. However, once those debts have been resolved your credit report will no longer show those debts as “charged off” but paid as agreed with a zero balance, which is positive compared to a “charge off.” As your accounts are settled your credit score will improve.
Can I still use my credit cards?
No. Cards both included and excluded from the program in most cases will lose credit privileges. This program is designed to get you out of debt and even cards excluded from the program should not be used.
What will I pay for services?
Your enrollment fees are determined based on a percentage of your total debt enrolled in the program. The enrollment fee is broken up and taken out of a portion of your monthly payment for the first 18 months. There is an additional maintenance charge for each month you are in the program. All costs and fees are always fully disclosed and you are required to sign for approval before you commit to our law firm.
Can a creditor sue me to recover a debt?
Creditors have the right to file a lawsuit on a delinquent debt, though it is not very common. In most cases, the purpose of the lawsuit is to force a settlement on the account. Because it costs the creditors money, they will often settle an account before it reaches court and becomes a judgment. Should you be issued a summons on the account, we will walk you through a response and do everything in our power to work out a resolution with your creditor.
Can your firm stop my creditors from calling?
No, unfortunately creditor calls are part of the process. There are options we have to reduce or minimize the calls, but at times these options lead to more aggressive attempts from the creditor to collect, and even pursue a lawsuit. Upon enrolling in debt settlement representation with Innovative Law Center, we will provide you with a copy of the Fair Debt Collections Practices Act Guidelines, which collectors must adhere to. This way you are aware of your rights as a consumer and can determine if a creditor’s calls are harassment or within FDCPA Guidelines.
Can creditors garnish my wages?
A judgment must be issued on an account before a creditor will be able to garnish your wages. After a judgment is issued the creditor needs to file for wage garnishment before they are able to do so. We will work with your creditors after you receive a summons to work out a satisfactory resolution before it gets to the point where a creditor will be able to garnish your wages.
Please note, however, that if you have a checking or savings account with one of your creditors, they do have the right to collect directly from your account if your credit card account is delinquent.
Can't I negotiate my debts with my creditors on my own?
You can negotiate your debts with their respective creditors on your own.
Be aware, however, that the Debt Settlement process can be a cumbersome and time-consuming process for the average consumer. Our legal assistants have the knowledge and experience to work out the best possible settlement with your creditors.
What are the tax consequences?
Your creditors can report savings from a settlement to the IRS as though it was given to you as income. However, the IRS permits you to write off any “income” from settled debts up to the amount by which you can prove insolvency. Our firm will provide you with additional information in handling a 1099 form from creditors.
Contact our Toll Free number at 1-877-733-4786 x 801
