Davenport Debt Relief FAQ’s
Will late fees and interest still accrue on my accounts?
Yes. Your debt payment plan will still include the fees and payable interest you may have pending. Creditors will continue to add late fees and interests to your account until the debt is paid off. However, if you sign up with our debt settlement program, these on-principal amounts will not be visible because our program will reduce the monthly debt payments to a manageable amount which is far less than the actual debt. Fees and interest are already included in the monthly payment.
What if my creditors won’t settle?
Creditors don’t immediately reject debt settlement offers unless they have a counter-proposal ready to present. The reason for this behavior is that creditors don’t want to lose profit because debtors can’t pay off their debts completely. They would do everything in their power to get some of the debt paid, even through debt settlement.
Does debt settlement have a negative impact on my credit history?
Yes. Creditors will charge off amounts with outstanding debt when it goes into debt settlement. Once an account is charged off, it will reflect on one’s credit history. Even if one aims to sort out their debt, they will no longer be able to follow through with their original credit agreement.
However, you can still revive your credit rating by settling your existing debt. Once you do sort out your debt, the creditor will let the IRS and other crediting institutions know that you have paid off your debt. By paying off your future credit on time, your credit history will recover.
Will I continue to get calls and collection letters from my creditors?
Yes, you most likely will still get letters and calls from your creditors even if you sign up for a debt settlement program. However, creditors may tone down their calls and debts after they confirm that you are partnering with a trustworthy debt relief company like us for your debts. We can also provide you with the tools you can use to lessen creditor harassment if needed.
Will this program stop legal action against me?
No. Creditors can still pursue legal action against their debtors even if they undergo a debt settlement plan. However, they will be more understanding if they know you are partnering with a debt relief company like us to resolve your debts, and they won’t press you with constant calls. If they do call, they may ask for an update or remind you about your debts.
Should your creditor file a lawsuit against you, you can be assured that our team will not stop processing your debt settlement plan even if there is a legal proceeding against you. We can continue our service before, during, or after the lawsuit, ensuring that you are focused on your goal of getting your debts in control and paid as soon as possible.
We recommend that you contact an attorney who specializes in debt law if you are facing a lawsuit from your creditors. While you are sorting it out, we will continue with our tasks to help you manage your debts.
Who is qualified?
People who have financial difficulties and find it hard to pay their debts qualify for a debt settlement program. Those who only have a few late payments and those who can’t pay any amount of their debt at all are not eligible for this program.
How do I apply?
To get your situation reviewed and see if you are eligible for a debt settlement program, complete our online form and send it to us. One of our debt specialists will look into your application and see if you qualify for our debt relief program. If you qualify, we will give you a call to proceed to the next step.
What will I pay for your service?
Our service fees are already included in your monthly payment plan. Our fees are computed based on the total debt that will be placed under the debt settlement program. We will disclose all the fees that will be included in your monthly payment plan, and nothing will be hidden from you. Before we proceed with the debt settlement plan, we will explain the procedure to you, so you understand how the process will work and then seek your approval signature.
When I enroll in the program, what will happen to my accounts? Can I still use them?
If the canceled debt amount from the debt settlement plan is over $600, the creditor will report it to the IRS, while the debtor is required to include it in their tax returns as “income.” However, if you are considered unable to pay at any time during the debt settlement period, the amount can be written off. Any fees and interest will also be deducted from the total amount if you are not insolvent during this period.
Learn more about this topic by checking www.IRS.gov Publication 908, Form 982.
Can I still use my credit cards?
No. All your accounts – bank accounts and credit cards – will be frozen until the debt settlement plan is complete. It is also recommended that you do not add more credit to your account because it will affect your payments.
Call Optimal Debt Solutions at (405) 939-2663 today for your Free Consultation with an Davenport debt relief expert!