Freqently Asked Questions
1. How can Credits Best Solutions help me?
We will work with you and your creditors to settle your debts based on your financial capability. We redirect most of the creditor correspondence and communications to us for timely and proper responses, eliminating the nagging phone calls and letters directed at you.
2. Can debt settlement stop the creditors from calling me at home and at work?
If need be, we can serve a "Cease and Desist" notice on creditors that continue to call or harass a client after we have informed the creditor that we represent the client. While most reputable creditors will discontinue this behavior, we cannot guarantee that all creditors will abide by such notice and we may need to arrange for a creditor to receive a notice from an appropriate government agency.
3. How do I qualify?
We analyze your debts and financial condition then structure a settlement plan based on a forecast of your financial resources and capabilities, which will be submitted to you for your approval. Once you've successfully enrolled in one of our programs, we will process the documents necessary to provide proper notices to your creditors. As your accounts move through the collection process and into creditor departments authorized to settle accounts, we will convey to each creditor their apportioned allocation from your settlement plan so that they may reach settlement agreements with you.
4. What is it going to cost me?
Because we are paid out of the settlement amount, or the amount you can afford to pay your creditors, each case is different. Our fee structure is based on the government guidelines established for structured settlements, court appointed trustees and accountants. We will reduce our fees to accommodate extreme hardship cases in order to qualify a client into a settlement program.
5. Do I have to be delinquent to qualify for our programs?
No! Most businesses and consumers experiencing a financial hardship from a variety of adversities know in advance that their cash or cash flow will be insufficient to satisfy their debts. Communicating early with creditors can often prevent accounts from becoming delinquent or being turned over to collection agents, whom rarely have the authority to accept anything other than a lump sum payment to settle the debt. [If clients had enough cash to pay all of their creditors in a lump sum they would probably not be experiencing a financial hardship.]
6. Can debt settlement improve my credit rating?
Our programs are designed to resolve and eventually settle the client's debt with their creditors. While our programs should improve the client's financial situation, we have no control over the credit reporting bureaus or creditors' posting practices.
7. Will enrolling prevent me from obtaining credit?
No! However, once enrolled in an Credits Best Solutions settlement program, clients may only obtain new credit for allowable expenses, necessities of life or as may be used or required for the production of income, whether the client is an employee or a business.
8. What type of debt qualifies?
Unsecured Debt, which is defined as any loan, lien or other financial obligation of a client, which IS NOT secured by real or personal property and DOES NOT have a priority position with respect to other unsecured obligations of the client.
NOTE: Client debts having priority by statute or court order, such as taxes and judgments, may be settled. Even the IRS is authorized to negotiate tax settlements.
9. Should I file for bankruptcy instead?
Our programs are less offensive to your credit than bankruptcy. We believe that bankruptcy should be a last resort rather than a first choice for resolving and settling creditor accounts whenever possible. Bankruptcy stays on the client's records for up to ten years.
10. Should I stop paying my creditors?
Not unless your cash or net cash flow is insufficient to satisfy your current debts and to make minimum payments would require that you borrow more money from another creditor knowing that you do not have adequate funds to repay the funds being borrowed.
11. What if it was you, what would you do?
Given a scenario or event that leaves me where I can no longer afford the necessities of life and pay my creditor loan balances, I would employ the professional services of Credits Best Solutions to demonstrate to my creditors that I am serious about resolving my financial condition with them but in a least offensive manner and without bankruptcy or court actions.
12. Does Credits Best Solutions control or direct my funds while they are accumulating?
The client's income and expenses for the necessities of life dictate the amount of funds the client has available to accumulate to settle with creditors. These settlement funds remain under the care, custody and control of the client. Credits Best Solutions will convey final settlement agreements to the client along with any payment conditions of a creditor, which shall be performed at the direction of the client.
13. What happens if my creditors won't or don't settle?
All creditors eventually settle - some faster than others depending on their individual policies and strategies. Some offer lower settlements for earlier payoffs fearing that the client may file bankruptcy. Other creditors hold out longer hoping for a larger settlement. Most tend to fall between the two and can therefore be forecasted within a reasonable estimate of what to expect overall.
14. If I have other financial resources do I have to disclose them to the creditor?
We will provide a forecast based upon the client's income and expense schedules as reported by the client, which are taken at face value and used to support proposed forecasts and programs on behalf of the client. However, a creditor may request additional documentation to support the client income as a condition for the creditor to resolve and settle the client account. The creditor is not limited to the information provided by Credits Best Solutions and may investigate possible financial resources of the client separately, for which the creditor may find cause for other actions upon such discoveries.
15. How will I know the amount that each creditor will accept as settlement?
Credits Best Solutions shall convey offers, responses to offers, and a final settlement agreement to the client along with the payment instruction of the creditor in accordance with the debt settlement agreement.
16. Can debt settlement get derogatory marks erased from my credit report?
Credits Best Solutions programs may be recognized by the client's creditors as an attempt to resolve and improve the client's financial condition for which they may be encouraged to submit more favorable marks, however, we cannot erase or directly cause derogatory marks to be erased.
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