Virginia Debt Relief FAQ’s
Will late fees and interest still accrue on my accounts?
Yes. Even during the negotiation phase, creditors will still include late fees and interest but only until the account is charged off. These non-principal amounts will still be reflected in your payment plan. But don’t worry, the fees and interest will not significantly impact your payments because we aim to negotiate a payment plan amounting to less than the original total debt.
What if my creditors won’t settle?
From the perspective of the creditors, it is always better for their debtors to settle with a new payment plan than to receive no payment at all. Typically, the only time creditors would reject a debt settlement plan is when they want to offer a counter-proposal that will still benefit both parties.
Does Debt Settlement have a negative impact on my credit history?
Yes. If we successfully enter your account into a debt settlement plan, it will most likely be charged-off, and charged-off accounts generally are bad records for anyone’s credit history. Once you’ve finished paying off your debt with the new payment plan and the creditors notify the credit bureaus, you can now begin rebuilding your credit reputation.
Will I continue to get calls and collection letters from my creditors?
Yes. Chances are, even if we’ve agreed on a debt settlement plan, your creditors will still attempt to contact you and pressure you to follow through with your payments. However, we know through experience that creditors lighten their call and collection attempts after we’ve successfully negotiated a payment plan. Our debt specialists can provide you with the knowledge you need in approaching and lessening creditor harassment in the future.
Will this program stop legal action against me?
No. Even if we’ve already finished negotiating your new debt payment plan, creditors do not lose the right to enforce legal actions to force you to pay back your debt. In fact, threats of lawsuits against debtors are illegal if the creditor does not intend to sue. There is no assurance that your creditors will not continue or jumpstart any legal action against you.
What we can guarantee; however, is that we will focus on perfecting the debt settlement process before, during, and after any legal proceedings occurring between you and the creditor. We understand that being on the flip side of a lawsuit can be one of the most frightening situations that a person might experience. So at Optimal Debt Solutions, we remain focused on the prize, which is you being able to conquer your debt and finish your business with your creditor as soon as possible. In such situations, it is best if you hire the services of a lawyer who is an expert in handling debt-related legal issues.
Who is Qualified?
Debt settlement programs are designed to help only those who are struggling with paying their debts. Those who are found to be totally incapable of paying their debts will be better served by a bankruptcy filing. At the same time, those who just have minor problems like late payments won’t be qualified for a debt settlement program.
How do I apply?
The process begins by completing an online form. Your case will be evaluated by a debt expert. Once we’ve concluded that your case passes the requirements for eligibility, we will contact you immediately.
What will I pay for your service?
The fee for our services, which will be included in your monthly debt payment, depends on the amount of your debt that will be involved in the debt settlement program. Rest assured that we offer full transparency of these fees and all will approved by you through a formal signature before any finalization of the program is confirmed.
When I enroll in the program, what will happen to my accounts?
If the debt settlement program cancels more than $600 of your debt, the creditor must report this to the IRS, and you must report this amount as “income” in your tax return. On the other hand, any canceled debts during the period that you’re considered insolvent (incapable of paying) may be written off. You won’t be required to pay those taxes unless you have a positive net worth. But if you were not insolvent, accrued interest and other fees cannot be considered in the tax deduction.
Refer to: www.IRS.gov Publication 908, Form 982.
Can I still use my credit cards?
No. Any credit account involved in a debt settlement program won’t be available for use. As general advice, it is best not to conduct any sort of credit activity while a debt settlement is ongoing.
Call Optimal Debt Solutions today at (757) 530-5988 for your Free Evaluation!