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Seriously.If you are over your head in credit card debt, medical bills or personal loans, why would you
not consider debt settlement?Apart from receiving a substantial inheritance or winning the lottery, most of us don't have many options when it comes to getting out from under our debts. But before considering any options, we strongly recommend you first visit CNNMoney's
Debt Calculator for an accurate prognosis of your financial future.
Not everyone may qualify for this proven method of unsecured debt relief, but anyone who has successfully completed an FTC compliant, attorney backed Debt Settlement Program will tell you that it was one of the wisest financial decisions they'd ever made.
These are the facts:
1. You can save thousands of dollars and be out of debt in as little as 2 years.
2. During the term of your settlement, you will make one monthly payment in an amount that is a fraction of what you're paying now.
3. Upon successfully completing the debt settlement process, your Debt to Income (DTI) ratio is more attractive to lenders than just a high FICO score, which can be repaired within months after completing our program.
4. The only advantage to having good credit is how easy it makes it to get into debt.
Call (866) 738-9424 to find out how you can cut your credit card payments in half and be completely out of debt in less than 4 years!
Debt Advisors of America works with only the most proven and aggressive law firms in the world, and are settling our clients' debts at between 18 and 40 cents on the dollar. And our attorneys have offices in every major city, in all 50 states, providing our clients with personal legal service locally, and at their convenience.
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You Have Rights If you've read this far, it's probably safe to assume that you've begun receiving calls from your creditors. If this is the case, and your current inability to make full or timely payments is only temporary, your creditors will most likely be willing to work with you. However, if you are in the very common position of being unable to continue making even the minimum monthly payments, you may be considering bankruptcy. And while this may be the solution of choice for many Americans during our current economic climate, it's not the only one. Debt Advisors of America has been providing debt relief assistance to individuals since 1998, and is committed to offering only those solutions best tailored to the individuals' financial needs and situation. But regardless of how you decide to approach your financial crisis, you will find comfort in knowing that the Federal Trade Commission (FTC) is the nation's consumer protection agency which enforces the Fair Debt Collection Practices Act (FDCPA) and prohibits creditors from using abusive, deceptive or unfair methods of collecting debts. Under this Act, a debt collector can be the lender themselves, collection agencies, attorneys or companies that collect for profit by buying delinquent debts. The Act covers all personal debts like credit cards, auto loans, mortgages and medical bills, but does not provide protection from debts incurred while operating a business.
Debt Collectors Cannot:
- Threaten the use of physical force
- Include your name on any list of debtors available to the public
- Use threatening or vulgar language
- Continue calling you if you've requested them to stop
- Impersonate or imply that they are attorneys or government officials
- Falsely claim that you're committing a crime
- Falsely claim to work for a credit reporting agency
- State false or inaccurate information regarding what you owe
- Claim that forms they send you are legal if they aren't
- Claim that forms they send you aren't legal when they are
- Threaten your arrest
- Threaten any legal action that cannot be legally taken
- Provide false or inaccurate information to anyone, including other creditors and credit rating agencies
- Claim they can seize property or wages if they are not legally allowed to do so
- Claim false identities or use fake company names
- Deposit any post dated check early
- Send papers that only appear to be legal or official government documents.
- Collect any additional fees in addition to your debt, except where allowed in your initial contract with the lender, or if it's legal to do so in your state
Debt Collectors cannot pester you by phone.
Most states allow them to call you between 8:00 a.m. and 9:00 p.m. your time, and you can keep them from calling you at work by simply telling them you're not permitted to make or receive personal calls. If they persist you can take legal action. Another effective solution today is to simply screen or block their calls.
You can permanently stop them from calling.
Send a certified letter (make sure to keep a copy) return receipt, requesting that they stop calling you. They are only allowed to call you again for one of two reasons: To inform you that they've received your letter and that they won't be calling again, or that they have chosen to take legal action against you. But again, do not hesitate to file a legal action against them if they choose to ignore your written request.
Can bill collectors contact anyone regarding my debt?
They are permitted to question anyone for your contact information only, like your address, phone number or place of employment, and are prohibited by law from discussing your situation with anyone other than you, your spouse or your attorney.
What can I do if a collector violates my rights?
It is well within your rights to sue any debt collector in violation of the laws under federal Fair Debt Collection Practices Act. If the court finds the collector guilty, the defendant can be awarded monies for lost wages, medical bills, court and attorney's fees, and as much as $1,000 for unsubstantiated claims as well. Many states have their own laws governing debt collection that may differ to some extent from the U.S. FDCPA and all violations should be reported to both your state's Attorney General's office and the Federal Trade Commission.
Debt Settlement
Also referred to as arbitration, is the negotiation process by which you and/or your attorney attempts to reach an agreement wherein your creditor reduces the amount of your debt and waives any interest and penalties for a lump sum payment. However, as long as you continue making payments, your creditors will not consider a settlement. Creditors have been known, on occasion, to waive some penalties and/or fees, and even lower the interest rates a point or two for preferred customers in dire straits, but that's only because creditors are happiest when their customers continue making those payments for as many years as possible.
Federal Trade Commission (FTC) legislation
Proposed in October of 2010, new laws will force all debt settlement companies to offer only attorney backed programs, and prohibits them from charging any up-front fees for their service. That being the case, most non-compliant settlement companies saw the writing on the wall and either closed shop, or have since become attorney modeled. Unfortunately this legislation is still before congress, so there remain a number of companies willing to gamble on whether there still remain people out there that accept spoken words as fact. Should you decide negotiate a settlement with your creditors, solution to your financial situation,it's imperative you have experienced, reputable and legal representation.
Lenders and debt collectors can sue you.
But they won't. Because litigation costs money, and when they sue someone that has no money, they get no money. The fact is that less than 1% of those that go through the debt settlement process ever see the inside of a courtroom. Creditors are very aware of their clients' financial situations, and know that whenever their customers successfully petition for bankruptcy, they get nothing more. Their only chance of recovering any bad debt at all is to settle out of court through arbitration. And while this can be done by debtors themselves, it is really not recommended. If absolutely every dot and comma of the new contract with your lender isn't properly in place, or you miss a payment, there can be severe penalties. And while it doesn't happen that often, there are cases where people can't continue making payments and drop out of the program, only to find themselves prohibited from filing for bankruptcy because of that little clause they'd missed when they signed the settlement contract. Of the 1% that do find themselves in court, the majority are those that chose self representation, or were inadequately represented, and a small number of them are often found to be in violation of laws of a fraudulent nature.
Should the court rule in favor of the Lender, a garnishment order is issued which permits the Lender to deduct a court ordered amount each month from the debtor's bank account(s).
Most government pensions are protected from garnishment.
However, federal benefits can be garnished to pay delinquent taxes, alimony, child support or student loans. With those exceptions, the following list includes
government pension and benefit programs that cannot be garnished:
- Social Security Benefits
- Supplemental Security Income (SSI)
- VA Benefits
- Civil Service Federal Retirement and Disability Benefits
- Service Members' Pay
- Military Annuities and Survivors' Benefits
- Student Assistance
- Railroad Retirement Benefits
- Merchant Seamen Wages
- Longshoremen's and Harbor Workers' Death and Disability
- Foreign Service Retirement and Disability
- Injury, Death, or Detention Compensation for U.S. employees working outside of the U.S.
- FEMA Federal Disaster Assistance
Choose only those debts that you want to settle.
Unlike bankruptcy or credit counseling, enrolling in a legal, debt settlement program allows you to retain any card accounts you wish, unless the card is issued from your bank, in which case you can simply open a new account with another bank. Most people find that keeping 1 or 2 credit accounts open for emergencies to be a major plus when compared with other forms of debt relief, and because all kinds of unsecured debt can be included in your settlement contract, that means you can choose to keep your Home Depot and gas cards as well.
Filing for Chapter 7 Bankruptcy
For those who qualify for bankruptcy under Chapter 7, having all of one's debts permanently erased can prove to be an excellent way of starting over. And that's just what our bankruptcy laws were designed for; to provide relief for people suffering from severe financial misfortune, and to afford them the opportunity of get back on their feet. But in addition to the obvious downside of becoming credit-worthless for 7 to 10 years, legislation passed back in 2005 makes it increasingly more difficult to qualify for Chapter 7, forcing many petitioners to accept terms under Chapter 13, which requires the debtor to pay back a considerable portion of what they owe. This is hardly an ideal solution as not only does the debtor remain indebted, they're also subjected to all the other negative aspects associated with bankruptcy. And as our nation?s economic and employment crisis worsens, it's important to note that declaring bankruptcy is proving to have more of an effect on an individual?s eligibility for employment these days than ever before.
Document your financial situation.
Once you've decided to file for bankruptcy, you will want to create a document listing everything you own, bought and paid for, and everything you're still paying on, like your mortgage or your car. In addition to all of your current creditors' statements, you will be required to produce any and all documentation supporting your claim of insolvency by providing the following:
- Previous 2 years of tax returns
- Pay stubs for the last 6 months of employment
- Current bank statements
- Retirement, pension and/or investment statements
Filing for bankruptcy requires complete, accurate and timely delivery of all documentation.
Many of those unfortunate enough to have resorted to this dramatic solution to their financial needs find that the internet provides all of the documentation and information needed to do this on their own. The fact is that most anyone willing to apply a moderate amount of effort can save the cost of an attorney and, depending on which state you?re filing in, the court costs are normally just a few hundred dollars. However, while there may be any number of forums, blogs or how-to sites offering you guidance and assistance in the preparation of the paperwork, it's important to confirm the accuracy of all information, and to seek any experienced or legal assistance you may need before proceeding. The most difficult hurtle for most of those who file on their own is the time constraints imposed by the courts for each step in the process. Being inadequately prepared for or missing any scheduled meetings, even by minutes, will result in your petition being rejected, and you'll be sent back to square one. You will have to pay the court's fees again and, depending on your state's laws, can even be prohibited from re-filing for an additional period of time.
How to file your Petition:
Many state courts today utilize electronic filing of the documentation, in PDF form, through the PACER system (Public Access to Court Electronic Records), but it never hurts to file in person because you will be required to appear at least once anyway, and may want to become familiar with the building's layout and security procedures, as well as parking availability and its distance from the courthouse.
Within a few weeks of filing you will receive a "Notice of Commencement of Case" in the mail which informs you that all of your creditors have been notified of your action, and that they are from this point on prohibited from pursuing further collection of debts or suing the debtor. The notice also tells you the date, time, case number and location of a 341 Meeting of Creditors.
Creditors have the right to contest your claims.
It?s a good idea to have a prepared statement that covers your complete situation in detail, because the Trustee that reviews your petition at this meeting will have some pointed questions regarding your financial condition. This is also the first time your creditors will be allowed to contest your petition, and are allowed to question you on any spending details.
Wait for the Discharge Order.
Most state bankruptcy courts allow up to 60 days for the trustee and/or creditors to object to the discharge of your petition. However, if your Trustee seemed satisfied that all was in order during your 341 meeting, and none of your creditors showed up to contest your claims, the chances are good that you will receive your discharge within those 60 days. Once you?ve received it, you are legally free and clear of those debts.
Consumer Credit Counseling
Founded in 1972, the Consumer Credit Counseling Services, or CCCS, was created with the sole purpose of deterring people from filing for bankruptcy. But the fact is that many credit counseling services are funded by the creditors themselves, providing the incentive needed for these agencies to get as much as they can from the debtor. It is also important to note that most counseling services claim to be non-profit when in fact they're not. In a billion dollar industry they are able to show no profits at the end of the year by having paid it all out in the forms of executives' bonuses and employee incentives. If this sounds a little familiar that's because it?s just another form of debt collection. Apart from getting your creditors to lower the interest rates a few points, you can expect little in the way of a reduction in your monthly payments unless they are able to negotiate an extension in your terms, which simply means you'll be making lower payments for a longer period of time. Should you choose this method to help you regain your financial freedom, it?s important to know that:
- Your credit rating will be affected
- Your monthly payment will not be much lower than it already is
- Terms are generally 5 or more years
Debt Consolidation Loan
Any asset of considerable value can be used as collateral for securing a loan. Those people that still have equity in their homes can apply for a loan to pay off their debts, but lenders are currently more unwilling than ever to offer equitable terms on real estate. In any case, what's important to understand with this option is that you are simply trading debts. Lower interest rates and a lower monthly payment are virtually assured, but you will be paying on it for many more years to come, and all too often the debtor will continue to use their credit cards, acquiring even more debt. And when that happens, they're that much closer to losing their home. Without a doubt the ideal solution for those who can still get a decent loan, but it is strongly advised that the debtor put their credit card(s) in a safe deposit box and use them only for emergencies until their financial situation greatly improves.
Debt Advisors of America
You have real, attorney representation. And attorneys aren't cheap. But the fact that they will save you thousands of dollars and years of time to get you back on the road to financial freedom is no small benefit of their service. When you enroll in any legal debt settlement program, you will be required to set up a trust fund account where you will make your agreed upon monthly payments. 70% of your first year's payments will be used to pay the attorneys. That's right, the lawyers get their money first; but they have not been idle. Within a few short days of making your first payment, your creditors are notified of your action and that you are, from that point on, legally represented. The law definitely works to the advantage of the debtor here in that any further correspondence between you and your creditors (or any collectors working on their behalf) must be made strictly through the attorney's office. Our attorneys are very aggressive and will not hesitate to sue any creditor(s) in violation of your rights while participating in this legal form of Debt Resolution.
Legal Fees and Payment Plans
Rates and terms will vary with the individual debtor, and much depends on the form of an unsecured debt, as well as the balance owed. For a firm and accurate quote on how much our program will save you and how soon you can be out of debt, simply call (866) 738-9424 and speak with one of our highly qualified debt analysts.
We truly respect your privacy and will not share your phone number or any other contact information with anyone.
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