Questions and Answers
1. How long does Credit Card and Foreclosure defense take this process take?
There is no established time frame for when the program will terminate. The process can take anywhere from 8 to 24 months, and it is not possible to know when the program will cease. We need to analyze each client’s individual circumstances. Each client’s debt circumstances vary and the program must be tailored with this in mind for each client. This analysis becomes the most effective tool legally.
2. What is my role while the attorney is handling my Credit Card Litigation case?
As a client you are responsible for being responsive to the law firm’s requests. It is imperative that you maintain an active call log, and more importantly, answer each creditor’s phone call. Every communication with a creditor, after entering into the program, is a possible violation of federal consumer protection statutes, and every conversation with them creates the possibility for your attorney to find a violation of these statutes. This will allow us to initiate litigation against the debt collector for this violation. It is necessary for you to communicate with the creditors that you are represented by an attorney and give them our contact information. In the event that you are sued by one of your creditors it is extremely important that you contact this office immediately in order for the law firm to be aware of the litigation. It is your responsibility to make sure your attorney knows of any new developments regarding any legal matter. Please do not just assume your attorney knows you have been sued.
3.The fees I am paying will be used towards paying my credit cards?
You are paying for legal representation and none of the monies are used for credit card payments. Your attorney will explore any legal method that is available to you in order to address your individual debt circumstances. One option would be a settlement of the debt. Your attorney will make every effort to ensure that any settlement that you enter into will completely extinguish your debt for the least possible amount of money, which is paid by the you, the client Please be aware, that at no time will you be forced to settle. The decision to settle will be made after you have had an opportunity to speak with your attorney and discuss the matter fully so that you, as a client, can make an informed and responsible decision concerning settlement before any binding action is taking on your behalf.
4. I was told my debt would be totally eliminated.
Elimination of a debt can take many forms. If the debt is forgiven, then the debt is eliminated. If a reduced settlement is reached, then the debt is eliminated. If you prevail in litigation, then the debt will be eliminated. There are many paths to achieve a debt free life style. There is not a guaranteed maneuver for your attorney to make all your debt disappear. You are entering into this program so that you, as a consumer, can put yourself in the most advantageous position to deal with your debt circumstances. This may mean litigation, settlement, or other methods. Be aware that you might have to make some level of payment towards some of your debts, but your attorney will make sure that every avenue of elimination is explored prior to settlement of the debt at your expense.
5. Do I continue paying on my credit card accounts?
The decision to continue paying your credit cards is entirely up to you as the consumer. Understand that the effectiveness of this program is based upon the assumption that your credit cards are in default. You will not be instructed to stop paying your credit cards, but if you do, you must understand that the failure to pay your debts in a timely fashion will have legal consequences that will allow us to dispute in a better fashion. The failure to pay your debts will have consequences on your consumer credit report as well. Our program is designed to assist our clients in obtain results that will eliminate the credit card tread mill. If you desire to continue paying your credit cards, ask to speak to your attorney and together we will develop a plan in which to address your debt circumstances in a manner that will achieve the maximum effectiveness of the program.
6. What happens if I do not pay on my credit card accounts?
If you do not pay on your credit card accounts, you may be sued. Your credit report will show delinquencies that will result in a lower credit score. Your existing credit lines will decrease when your other creditors become aware of the delinquencies on your credit report. You will be sent to collections and debt collectors will try to contact you. With the assistance of your attorney, these circumstances can be managed in such a way that their overall effect will be minimal and you will be able to utilize these circumstances in a manner that will help you achieve a debt free life.
7. Why is my credit being affected?
Your credit will be affected when your accounts have fallen into delinquency by the failure of payments. The only way to have good credit is to pay your bills on time. By reducing your overall debt and placing yourself in a position to pay your bills in a timely manner and in full, your credit score will correct itself. Remember, the financial industry benefits financially by extending you credit. They want to lend you money. What is required of a consumer is to show them that you can pay your bills on time. By reducing your debt and freeing up your disposable income you will find that you will quickly become a good credit risk in the eyes of every financial institution.
8. How long will it be before my credit is restored?
Once your debt circumstances are fully addressed, you will find that your credit score will start to restore itself within 90 days. Remember that paying your bills timely is what accomplishes credit restoration. It may take up to 18 months of paying your bills on time in order to accomplish what would be considered a good credit score.
9. My balance keeps increasing and now they’re raising my interest.
What your creditor says you owe and what you may actually pay will always be two different numbers. There are many legal issues that develop as a result of your creditor’s continued charging of interest and fees after a default. Please understand, that your creditor will always try to prove that you owe more than you actually do. Your attorney will address these issues as they arise. Of importance is not the fact that they are charging interest and late fees, but whether you actually pay the interest and the late fees.
10. What does settling on an account mean?
Settlement of an account means that your attorney will actively negotiate with your creditors to obtain a settlement of a specific credit account at a reduced amount and under payment terms that fit your financial life style. Remember, your attorney will always make sure that a settlement that occurs will happen on your terms and under circumstances that will not strain your financial lifestyle and other obligations. Your attorney will make sure that in the event of a settlement, it is you that dictates the terms to your creditor and not the other way around.
11. What happens if I do not have the money to settle on an account?
Contact your attorney and discuss your finances. Your attorney will explain what accounts should be settled and for what amount. After evaluation, a decision will be made together that will ensure that your money has the maximum impact on your debt circumstances.
12. If I’m only paying a retainer fee, why do I have to pay out of pocket to settle one of my accounts?
Your attorney will do many things for you. Your attorney will dispute with your creditors. Your attorney will defend you in a law suit. Your attorney will sue your creditors. Your attorney will negotiate with your creditors and will protect you from your creditors. The attorney does not pay your bills for you. As a client, you must understand that you are responsible for your debts. It is your attorney’s role to assist you in addressing your debt circumstances in a manner that will achieve the ultimate goal of a debt free life style.
13. Will I receive a 1099 to file with IRS after I settle on an account?
It is possible you will receive a 1099 to file with the IRS in the event that a debt is forgiven. Your accountant or tax preparer will need to be made aware of this. But remember, if you are receiving a 1099, this indicates that a significant portion of your debt was eliminated, and often times, at no additional expense to you.
14. I paid my retainer in full. Does that mean you stop working?
Your retainer is financed interest free from this office because we understand that our clients are already in a distressed financial position. If you satisfy your retainer obligation in 8 months, we will continue to work with you for as long as it takes to address your debt circumstances.
15. What happens to my credit score if I do “settle as agreed” on an account?
The debt to equity ratio on your credit report will decrease. This will indicate you owe less money in comparison to the amount of money you make and the amount of credit you have available to you. This will always have a positive impact on your credit score because you will appear more valuable on paper to potential lenders.
16. Why do you need my social security and driver’s license?
This is basic identifying information. Your attorney requires this because many of your creditors will refuse to work with your attorney unless this is provided. Your creditor is required to verify anyone they discuss your private financial matter with are authorized by you to discuss this information. This basic information is proof that we are representing you and with your permission. In addition, many creditors and credit reporting agencies use this information to identify your accounts.
17. Why do you need an updated credit report every three months?
Often times, debts are sold or transferred to third parties without any notice to you or your attorney. We use your credit report as a way of reviewing your debt. We also use your credit report as a way of gauging our progress in your dispute. In addition, we are in need of your credit report to guarantee that your creditors are not supplying false or inaccurate information that will have a negative impact on your credit score.
18. What does “charged off” mean on my credit report?
A “charge off” is a term used by your creditors as a way of identifying accounts that have been closed due to non-payment. Technically this indicates that the creditor has removed your accounts from its books and decided that you will not voluntarily pay the obligation. It is the first step in the collections process.
19. Why does a third party now have my account?
A third party may be collecting on behalf of your creditor. A third party may also have purchased your debt from the creditor. The fact that a third party is now involved in your debt is a valuable tool for your attorney. Third parties are governed by very stringent federal guidelines that dictate the manner in which they are allowed to communicate with you. A failure to follow these guidelines could result in a third party being sued by your attorney. Failure to follow these guidelines may also result in debt elimination. Speaking to your creditors when they call, as previously discussed, will further assist your attorney with the violations that can be litigated with the third parties. The communication from the creditor is a typical evidence of a violation of debt collection laws.
20. If a creditor does not respond to your dispute letters, what happens then?
Your attorney may choose to sue your creditor and may use this as evidence that they cannot prove you are legally liable for the debt. Your attorney may also use their failure to respond as a negotiating tool to leverage a lower settlement. Please note there are many different ways to accomplishing your goal of a debt free life style. Your attorney will discuss and decide what is the best option to utilize in the event your creditors do not appropriately respond to your dispute letters.
21. My spouse is only an authorized user on several of my cards – does he need to be legally represented?
This is something that you may need to discuss with your attorney as the affect of being an authorized user may vary based upon the creditor.
22. What happens if my creditors continue to call me every day? And what do I say to the creditors that call?
If they are the original creditor on the account, then you need to tell them you are represented by an attorney and give them our information. After this initial contact, you may terminate the call, as you have notified them of legal representation. If it is a debt collector(third party), it is important that you catalog the call and contact your attorney immediately. It is important that you determine who is calling you. Often the creditor will say they are calling on your Chase account or your Bank of America account, but will not disclose that they are a debt collector. It is important to ask the following questions.
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Complete the call by telling them that you are represented by an attorney and give them our information.
The debt collectors will do everything possible to discuss the debt. Do not discuss the debt with the debt collector. They debt collector may use untruthful information in an attempt to mislead you into thinking it is in your best interest for you to deal directly with them, than have your attorney work with them. Remember that the debt collector only wants your money and your attorney stands in their way. Do not allow the debt collector separate you from your attorney. The debt collector will also try to intimidate you as well even resulting in your fear of speaking to the debt collector. Your attorney knows how to communicate with them. It is ok to fight back, push back, and demand they speak to your attorney. Your attorney will protect you.
23. What happens if a creditor calls my cell phone?
If a creditor calls your cell phone, answer it and ask the following:
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Inform the creditor that they are calling your cell phone and that you do not want to be called on your cell phone, it costs money.
6. Log the call and your instruction not to be called on your cell phone and inform your attorney should the calls continue.
24. What happens if a creditor calls my place of employment?
If a creditor calls your job answer it and ask the following:
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Inform the creditor that they are calling your job and that you do not want to be called at your job because you might be fired.
6. Log the call and your instruction not to be called at your job and inform your attorney should the calls continue.
25. Why are other creditors limiting my credit if I am not disputing against them?
Other creditors use your credit report as a way of analyzing you as a credit risk. At anytime you are delinquent on payments or fail to meet your debt obligations, another creditor, whom you may still be paying on time, may decide that you no longer remain a good credit risk and eliminate lending you money.
26. What happens if one of my creditors brings a law suit against me?
If it is a debt that you have in our program, we will assign your litigation to an attorney in your state for defense. We will work with this attorney and you in coming to a successful resolution of your litigation. In the event that you are sued by one of your creditors, it is extremely important that you contact this office immediately. It is your responsibility to make sure your attorney knows of any new developments in your legal matter. Please do not assume your attorney knows you have been sued.
27. Do I need to attend the court hearing if a law suit is held?
This is a decision that you and your attorneys will make when a hearing is upcoming.
28. How many times are the original creditors and or debt collectors allowed to call me before it considered a violation?
Unless your state has specific statutes that apply to original creditors, an original creditor has no restrictions upon how or when they communicate with you. This is because the Fair Debt Collection Practices Act does not govern, or limit, the original creditor’s communications with you. With debt collectors(third party), if they have been provided with the appropriate disputes and disclosures from our office, one phone call is often a violation. If you are being called more than 3 times a week by the same collector this is considered a violation. As mentioned before, it is imperative to find out the following with every phone call:
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Log the call and your instruction not to be called at your job and inform your attorney should the calls continue.
29. Can I go to jail for not paying my bills or if a lawsuit is filed against me?
NO! and if anyone tells you different they are violating the law and contact your attorney immediately.
There is no established time frame for when the program will terminate. The process can take anywhere from 8 to 24 months, and it is not possible to know when the program will cease. We need to analyze each client’s individual circumstances. Each client’s debt circumstances vary and the program must be tailored with this in mind for each client. This analysis becomes the most effective tool legally.
2. What is my role while the attorney is handling my Credit Card Litigation case?
As a client you are responsible for being responsive to the law firm’s requests. It is imperative that you maintain an active call log, and more importantly, answer each creditor’s phone call. Every communication with a creditor, after entering into the program, is a possible violation of federal consumer protection statutes, and every conversation with them creates the possibility for your attorney to find a violation of these statutes. This will allow us to initiate litigation against the debt collector for this violation. It is necessary for you to communicate with the creditors that you are represented by an attorney and give them our contact information. In the event that you are sued by one of your creditors it is extremely important that you contact this office immediately in order for the law firm to be aware of the litigation. It is your responsibility to make sure your attorney knows of any new developments regarding any legal matter. Please do not just assume your attorney knows you have been sued.
3.The fees I am paying will be used towards paying my credit cards?
You are paying for legal representation and none of the monies are used for credit card payments. Your attorney will explore any legal method that is available to you in order to address your individual debt circumstances. One option would be a settlement of the debt. Your attorney will make every effort to ensure that any settlement that you enter into will completely extinguish your debt for the least possible amount of money, which is paid by the you, the client Please be aware, that at no time will you be forced to settle. The decision to settle will be made after you have had an opportunity to speak with your attorney and discuss the matter fully so that you, as a client, can make an informed and responsible decision concerning settlement before any binding action is taking on your behalf.
4. I was told my debt would be totally eliminated.
Elimination of a debt can take many forms. If the debt is forgiven, then the debt is eliminated. If a reduced settlement is reached, then the debt is eliminated. If you prevail in litigation, then the debt will be eliminated. There are many paths to achieve a debt free life style. There is not a guaranteed maneuver for your attorney to make all your debt disappear. You are entering into this program so that you, as a consumer, can put yourself in the most advantageous position to deal with your debt circumstances. This may mean litigation, settlement, or other methods. Be aware that you might have to make some level of payment towards some of your debts, but your attorney will make sure that every avenue of elimination is explored prior to settlement of the debt at your expense.
5. Do I continue paying on my credit card accounts?
The decision to continue paying your credit cards is entirely up to you as the consumer. Understand that the effectiveness of this program is based upon the assumption that your credit cards are in default. You will not be instructed to stop paying your credit cards, but if you do, you must understand that the failure to pay your debts in a timely fashion will have legal consequences that will allow us to dispute in a better fashion. The failure to pay your debts will have consequences on your consumer credit report as well. Our program is designed to assist our clients in obtain results that will eliminate the credit card tread mill. If you desire to continue paying your credit cards, ask to speak to your attorney and together we will develop a plan in which to address your debt circumstances in a manner that will achieve the maximum effectiveness of the program.
6. What happens if I do not pay on my credit card accounts?
If you do not pay on your credit card accounts, you may be sued. Your credit report will show delinquencies that will result in a lower credit score. Your existing credit lines will decrease when your other creditors become aware of the delinquencies on your credit report. You will be sent to collections and debt collectors will try to contact you. With the assistance of your attorney, these circumstances can be managed in such a way that their overall effect will be minimal and you will be able to utilize these circumstances in a manner that will help you achieve a debt free life.
7. Why is my credit being affected?
Your credit will be affected when your accounts have fallen into delinquency by the failure of payments. The only way to have good credit is to pay your bills on time. By reducing your overall debt and placing yourself in a position to pay your bills in a timely manner and in full, your credit score will correct itself. Remember, the financial industry benefits financially by extending you credit. They want to lend you money. What is required of a consumer is to show them that you can pay your bills on time. By reducing your debt and freeing up your disposable income you will find that you will quickly become a good credit risk in the eyes of every financial institution.
8. How long will it be before my credit is restored?
Once your debt circumstances are fully addressed, you will find that your credit score will start to restore itself within 90 days. Remember that paying your bills timely is what accomplishes credit restoration. It may take up to 18 months of paying your bills on time in order to accomplish what would be considered a good credit score.
9. My balance keeps increasing and now they’re raising my interest.
What your creditor says you owe and what you may actually pay will always be two different numbers. There are many legal issues that develop as a result of your creditor’s continued charging of interest and fees after a default. Please understand, that your creditor will always try to prove that you owe more than you actually do. Your attorney will address these issues as they arise. Of importance is not the fact that they are charging interest and late fees, but whether you actually pay the interest and the late fees.
10. What does settling on an account mean?
Settlement of an account means that your attorney will actively negotiate with your creditors to obtain a settlement of a specific credit account at a reduced amount and under payment terms that fit your financial life style. Remember, your attorney will always make sure that a settlement that occurs will happen on your terms and under circumstances that will not strain your financial lifestyle and other obligations. Your attorney will make sure that in the event of a settlement, it is you that dictates the terms to your creditor and not the other way around.
11. What happens if I do not have the money to settle on an account?
Contact your attorney and discuss your finances. Your attorney will explain what accounts should be settled and for what amount. After evaluation, a decision will be made together that will ensure that your money has the maximum impact on your debt circumstances.
12. If I’m only paying a retainer fee, why do I have to pay out of pocket to settle one of my accounts?
Your attorney will do many things for you. Your attorney will dispute with your creditors. Your attorney will defend you in a law suit. Your attorney will sue your creditors. Your attorney will negotiate with your creditors and will protect you from your creditors. The attorney does not pay your bills for you. As a client, you must understand that you are responsible for your debts. It is your attorney’s role to assist you in addressing your debt circumstances in a manner that will achieve the ultimate goal of a debt free life style.
13. Will I receive a 1099 to file with IRS after I settle on an account?
It is possible you will receive a 1099 to file with the IRS in the event that a debt is forgiven. Your accountant or tax preparer will need to be made aware of this. But remember, if you are receiving a 1099, this indicates that a significant portion of your debt was eliminated, and often times, at no additional expense to you.
14. I paid my retainer in full. Does that mean you stop working?
Your retainer is financed interest free from this office because we understand that our clients are already in a distressed financial position. If you satisfy your retainer obligation in 8 months, we will continue to work with you for as long as it takes to address your debt circumstances.
15. What happens to my credit score if I do “settle as agreed” on an account?
The debt to equity ratio on your credit report will decrease. This will indicate you owe less money in comparison to the amount of money you make and the amount of credit you have available to you. This will always have a positive impact on your credit score because you will appear more valuable on paper to potential lenders.
16. Why do you need my social security and driver’s license?
This is basic identifying information. Your attorney requires this because many of your creditors will refuse to work with your attorney unless this is provided. Your creditor is required to verify anyone they discuss your private financial matter with are authorized by you to discuss this information. This basic information is proof that we are representing you and with your permission. In addition, many creditors and credit reporting agencies use this information to identify your accounts.
17. Why do you need an updated credit report every three months?
Often times, debts are sold or transferred to third parties without any notice to you or your attorney. We use your credit report as a way of reviewing your debt. We also use your credit report as a way of gauging our progress in your dispute. In addition, we are in need of your credit report to guarantee that your creditors are not supplying false or inaccurate information that will have a negative impact on your credit score.
18. What does “charged off” mean on my credit report?
A “charge off” is a term used by your creditors as a way of identifying accounts that have been closed due to non-payment. Technically this indicates that the creditor has removed your accounts from its books and decided that you will not voluntarily pay the obligation. It is the first step in the collections process.
19. Why does a third party now have my account?
A third party may be collecting on behalf of your creditor. A third party may also have purchased your debt from the creditor. The fact that a third party is now involved in your debt is a valuable tool for your attorney. Third parties are governed by very stringent federal guidelines that dictate the manner in which they are allowed to communicate with you. A failure to follow these guidelines could result in a third party being sued by your attorney. Failure to follow these guidelines may also result in debt elimination. Speaking to your creditors when they call, as previously discussed, will further assist your attorney with the violations that can be litigated with the third parties. The communication from the creditor is a typical evidence of a violation of debt collection laws.
20. If a creditor does not respond to your dispute letters, what happens then?
Your attorney may choose to sue your creditor and may use this as evidence that they cannot prove you are legally liable for the debt. Your attorney may also use their failure to respond as a negotiating tool to leverage a lower settlement. Please note there are many different ways to accomplishing your goal of a debt free life style. Your attorney will discuss and decide what is the best option to utilize in the event your creditors do not appropriately respond to your dispute letters.
21. My spouse is only an authorized user on several of my cards – does he need to be legally represented?
This is something that you may need to discuss with your attorney as the affect of being an authorized user may vary based upon the creditor.
22. What happens if my creditors continue to call me every day? And what do I say to the creditors that call?
If they are the original creditor on the account, then you need to tell them you are represented by an attorney and give them our information. After this initial contact, you may terminate the call, as you have notified them of legal representation. If it is a debt collector(third party), it is important that you catalog the call and contact your attorney immediately. It is important that you determine who is calling you. Often the creditor will say they are calling on your Chase account or your Bank of America account, but will not disclose that they are a debt collector. It is important to ask the following questions.
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Complete the call by telling them that you are represented by an attorney and give them our information.
The debt collectors will do everything possible to discuss the debt. Do not discuss the debt with the debt collector. They debt collector may use untruthful information in an attempt to mislead you into thinking it is in your best interest for you to deal directly with them, than have your attorney work with them. Remember that the debt collector only wants your money and your attorney stands in their way. Do not allow the debt collector separate you from your attorney. The debt collector will also try to intimidate you as well even resulting in your fear of speaking to the debt collector. Your attorney knows how to communicate with them. It is ok to fight back, push back, and demand they speak to your attorney. Your attorney will protect you.
23. What happens if a creditor calls my cell phone?
If a creditor calls your cell phone, answer it and ask the following:
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Inform the creditor that they are calling your cell phone and that you do not want to be called on your cell phone, it costs money.
6. Log the call and your instruction not to be called on your cell phone and inform your attorney should the calls continue.
24. What happens if a creditor calls my place of employment?
If a creditor calls your job answer it and ask the following:
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Inform the creditor that they are calling your job and that you do not want to be called at your job because you might be fired.
6. Log the call and your instruction not to be called at your job and inform your attorney should the calls continue.
25. Why are other creditors limiting my credit if I am not disputing against them?
Other creditors use your credit report as a way of analyzing you as a credit risk. At anytime you are delinquent on payments or fail to meet your debt obligations, another creditor, whom you may still be paying on time, may decide that you no longer remain a good credit risk and eliminate lending you money.
26. What happens if one of my creditors brings a law suit against me?
If it is a debt that you have in our program, we will assign your litigation to an attorney in your state for defense. We will work with this attorney and you in coming to a successful resolution of your litigation. In the event that you are sued by one of your creditors, it is extremely important that you contact this office immediately. It is your responsibility to make sure your attorney knows of any new developments in your legal matter. Please do not assume your attorney knows you have been sued.
27. Do I need to attend the court hearing if a law suit is held?
This is a decision that you and your attorneys will make when a hearing is upcoming.
28. How many times are the original creditors and or debt collectors allowed to call me before it considered a violation?
Unless your state has specific statutes that apply to original creditors, an original creditor has no restrictions upon how or when they communicate with you. This is because the Fair Debt Collection Practices Act does not govern, or limit, the original creditor’s communications with you. With debt collectors(third party), if they have been provided with the appropriate disputes and disclosures from our office, one phone call is often a violation. If you are being called more than 3 times a week by the same collector this is considered a violation. As mentioned before, it is imperative to find out the following with every phone call:
1. Are you a debt collector?
2. What company do you work for?
3. What account are you attempting to collect?
4. What is your name and telephone number where you can be reached?
5. Log the call and your instruction not to be called at your job and inform your attorney should the calls continue.
29. Can I go to jail for not paying my bills or if a lawsuit is filed against me?
NO! and if anyone tells you different they are violating the law and contact your attorney immediately.
