Addressing common concerns
Navigating financial hardship can be incredibly stressful, we understand the importance of alleviating uncertainties during your debt resolution journey. That’s why we are committed to providing transparent answers to address the most common concerns our valued clients often encounter.I’m here to support you every step of the way!
Answers to your concerns
We understand the concerns surrounding credit scores. It’s important to note that most clients already experience negative impacts on their credit due to factors such as poor payment history and high debt-to-credit or debt-to-income ratios. While enrolling in a debt resolution program may have a temporary negative effect on your credit, our primary goal is to help you resolve your debt efficiently, allowing you to embark on a brighter financial future, including the potential for a more positive credit score in the long run. Once your debts are resolved, you can focus on practicing positive credit behavior to rebuild your credit score gradually over time.
Yes, as part of the debt resolution process, the accounts being enrolled will be closed. However, this does not mean that you cannot obtain new credit cards in the future if needed.
While legal action from creditors is a possibility, it is not the most common course of action. In the event that you receive a legal notice, please promptly forward it to your servicing team so they can prioritize the affected creditor or lender and work toward finding a resolution. Rather than immediately pursuing legal action, creditors often choose to sell the debt to third-party collection agencies or law firms. If a lawsuit is filed against you, our settlement negotiators can strive to negotiate a specific payment plan or provide appropriate referrals for further assistance. Please note that we are not a law firm and cannot provide legal advice.
In general, forgiven debts can be subject to taxation. When tax season arrives, it is likely that you will receive a Cancellation of Debt form (1099-C) from the lender who forgave your debt. To better understand the specific tax implications of any debt forgiven through a debt relief program, it is advisable to consult with your tax advisor. They can provide personalized guidance based on your unique circumstances.
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What is the total amount of your unsecured debt?
Unsecured Debt = Credit Cards + Personal Loans