Pennsylvania Debt Relief FAQ’s
Will late fees and interest still accrue on my accounts?
Yes. Creditors will continue to charge you with late fees and interest until your debt paid is fully paid. This means that these fees will still be included in your debt payment plan. However, these non-principal fees won’t matter as much as you’d fear in the long run since our debt settlement program can significantly reduce your overall liability. We, Optimal Debt Solutions, will try our best to help you pay an amount lesser than what you originally owe, even after calculating the late fees and interests.
What if my creditors won’t settle?
It is highly unlikely that your creditors would deny the settlement if you have proven your inability to pay your debts in full. This is due to the fact that with a settlement, they can take back at least a fraction of their money, while on the other hand, they will get nothing if the debtor files for bankruptcy. If, however, your creditor refuses your settlement offer, we can still mitigate the situation with counteroffers and payment arrangements that will be beneficial for your specific financial situation.
Does Debt Settlement have a negative impact on my credit?
Yes. Accounts that are enrolled in a debt settlement program will “charge off” and reflect negatively on your credit score. This is because even if you intend to settle your liability through our debt settlement program, your history will still reflect how you failed to meet the original terms of your credit agreement. This impact will last for years and will poorly affect your future loan application, credit viability, and even job applications.
Fortunately, your credit score can still improve over time. Credit institutions will be notified once you complete your debt settlement program and fully pay your debt. You can then begin building your credit score back up by efficiently managing your future credit and avoiding getting behind on payments.
Will I continue to get calls and collection letters from my creditors?
Yes. Despite enrolling your account in a debt settlement program, your creditors will most likely still contact you for payment updates. However, these calls and letters would be less frequent and aggressive once they know that you’re working with us. Remember, though, that you should update the debt expert assigned to your account about any of your creditors’ collection attempts. You should also review the program kit that we provide to new clients so you will know how to properly deal with your creditors’ calls and possible harassment.
Will this program stop legal action against me?
No. Even if you’ve entered into a debt settlement program, this can’t legally stop your creditors from filing a lawsuit against you. However, most creditors tend to be more considerate and won’t pursue any legal action if they know that you’re working on completing a settlement plan.
And if, unfortunately, your creditor actually filed a lawsuit, Optimal Debt Solutions will still continue to process your debt settlement while the legal proceeding is ongoing. We will negotiate for your debt relief, whether before, during, or after your lawsuit. And to best reduce your stress and quickly resolve both your financial and legal problems, we highly recommend that you work with an expert attorney to address any lawsuit you’re facing.
Who is Qualified?
Debt settlement programs are available for people who have genuine financial hardships that affect their ability to pay back their debts. These hardships should also come with no quick end, like the death of an earning spouse, loss of income, divorce, medical problems, and overwhelming tax debts.
Additionally, eligible people should be several months behind in their payments and have proven inability to pay their remaining total debt in full. Their type of debt should also be eligible for debt settlement, which typically refers to most unsecured debts.
So if your debt is not tied to any other asset that your creditor can seize as payment for your debt, you can be qualified for a debt settlement. Unsecured debts include credit card debts, personal loans, and medical bills.
How do I apply?
You need to complete the application form online that you can find on our website. A debt consultant will review the details on the form you submitted before calling you for a situation assessment. After we have gathered all the information about your financial status and debt problems, we will then determine if you are eligible for our debt settlement program or not.
How much will I pay for your service?
Upon calculating your monthly payments, our service fee will already be included in the final amount. This will be based on the overall amount of debt that you enrolled in our debt settlement program. Don’t worry about our service fee, though, because we fully disclose them before asking for your signature of approval and finalizing your debt payment plan.
When I enroll in the program, what will happen to my accounts, can I still use them?
Your original creditors will have to report your overall canceled debts to the Internal Revenue Service (IRS) if the amount exceeds $600, while you will have to report this amount as income in your annual tax return. However, you don’t have to report your canceled debt as income and pay taxes for them if you still didn’t reach a positive net worth.
Also, if you’re still insolvent, you don’t have to report the non-principal fees accumulated on your account as well.
Can I still use my credit cards?
No. All the credit privileges in all the credit cards enrolled in the debt settlement program will be canceled. And for those credit cards that are not involved in the settlement program, we strongly advise against using them for you to avoid accumulating new debts. This way, you can focus on maximizing your payments and clearing your debts in the most efficient way possible.
Call Optimal Debt Solutions today at (267) 609-8657 for your Free Evaluation!