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DEBT RELIEF FAQ
What is debt settlement?
Debt settlement offers a remedy for this situation by reducing the amount of the debt using trained specialists in debt negotiation.
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What is the procedure for debt settlement?
An application will be completed while debt counselors are on standby to provide consultation. This assessment will include an in-depth financial analysis to verify the need for debt settlement. If the need is identified, then the required assistance will be offered.
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Do all creditors agree to settle?
Each situation is looked at individually; with good relations with many creditors, it is possible that most creditors will be willing to reach an amicable settlement.
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How long is the process?
Each case is different and it may take between 12 and 36 months to negotiate with creditors in order to reach a settlement agreement.
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What if the settlement cannot be afforded?
The debtor is able to control exactly what is to be settled and if there is not enough money for the settlement, then there is no transaction made. The creditor will be kept on hold until a time when funds can be available.
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Will the creditors be in contact with me?
The creditors make it a point to keep in contact with debtors and they will from time to time check up on you to give alerts or verify information.
---------------------------------------------------------------------------------------------------------------------------------------------- What is meant by unsecured debt?
This is money owed that is not tied to collateral; it includes credit cards, commercial debt, consumer debt and others.
---------------------------------------------------------------------------------------------------------------------------------------------- What is meant by secured debt?
These are loans in which the creditor retains a security interest or collateral. Any defaults will mean that the creditor can repossess the collateral.
---------------------------------------------------------------------------------------------------------------------------------------------- Can settlements be done over the phone?
No. It is best to carry out all settlement procedures in writing. Copies should be kept by all parties for reference
---------------------------------------------------------------------------------------------------------------------------------------------- Can creditors sue me?
Yes they can. However it is costly and is not usually in their best interest especially if a debt settlement is being initiated.
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