As a general rule, any type of unsecured debt can be successfully negotiated. An unsecured debt is one that is not tied to a specific material item that could be repossessed by the creditor. So an auto loan, for example, could not be included because the creditor could legally repossess the vehicle. (However, if the vehicle has been repossessed then we can negotiate the deficiency balance.)
Credit card debt, medical bills in collections, department store cards, signature loans, unsecured lines of credit, and revolving charge accounts are all types of accounts that can be included in our program. The main exception here are student loans, which in most cases are government backed loans that cannot even be discharged in a bankruptcy proceeding. (Private student loans that are not sponsored by the government can be included.)
While debt settlement is not for everyone, its flexible nature makes it easy to apply to a wide range of financial circumstances. For anyone seeking an alternative to bankruptcy, there is simply no better option to get out of debt.
While creditors have the legal right to do sue, lawsuits are less common than most people think. Usually the true purpose of a lawsuit is to force a settlement but the threat of being sued is very common and can be used as a scare tactic.Getting sued can possibly be avoided as long you are willing to work out payment plans with your creditors.
Q: Can my wages be garnished?
If you listen to some debt collectors, you might be fooled into thinking that they will seize your very next paycheck unless you make a payment right then and there. The threat of garnishing your wages is an intimidation tactic used by collectors to scare people into paying. Truthfully actual garnishment actions are relatively rare, and do not happen without advance warning.
First, a creditor must bring a lawsuit, obtain a judgment, and then take an additional step to obtain authorization for the garnishment. Plus only one creditor can garnish your wages at a time. No one can take your paycheck without court approval, and you must be given notice of such court action through formal documentation. So don't be fooled by one of the oldest collection tricks in the book.
Q. How does this affect my credit?
Not making the monthly minimum payments can result in late or delinquent balances. This is true whether or not you have enrolled in a Debt Reduction Program. Depending upon the condition of your credit report at the time of enrollment, a Debt Reduction Program may have an adverse effect on your credit report and credit score.
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