Frequently Asked Debt Relief Questions
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Q. Is debt settlement the same as debt consolidation?
A. In a debt consolidation program, the debt consolidator makes one loan to you to pay off all your debts. You are charged interest on this debt consolidation loan and in some cases you are still required to pay interest to your creditors. As a result, with debt consolidation your principal debt balance remains the same and you remain years away from becoming debt free. With the Johnson Law Group's debt relief settlement program, our highly skilled negotiators work on your behalf to significantly reduce your debt. On the average, our debt settlement program allows consumers to pay 40% to 60% of what they owe, and resolve their debts within two to four years.
Q. How is Johnson Law Group's debt settlement program different from a typical debt relief or debt management plan?
A. In a typical debt management plan you deposit money each month with a credit management firm. These firms promise to hold your funds in a special account and pay the creditors on your behalf. While these firms often claim to be “non-profit,” do not be deceived. They still receive payment for their work and are known to make inflated guarantees concerning their services. We are different. We are committed to providing the highest degree of service to our clients through full disclosure of all terms and conditions of our program. We do not hold your money in our account. Our job is to analyze your debt situation and provide you with appropriate options. The goal of our program is to resolve your debts through compromise settlements, achieved through expert negotiation with your creditors. There is a fee for our services, but we only accept clients who have the potential to achieve significant financial benefits from participating in our program.
Q. How long does the Johnson Law Group's debt relief settlement program take?
A. The length of time it takes to complete the debt settlement program varies depending upon your ability to acquire the funds necessary to resolve your debt. Most of our clients resolve their debts within two to four years, but it might take you more or less time depending on your situation. For information about how long it will take for our debt settlement program to resolve your debt, call 1-866-862-7870 for your free consultation.
Q. How will debt settlement affect my credit?
A. One thing you should know is that JLG IS NOT DELIVERING CREDIT REPAIR SERVICES, NOR ATTEMPTING TO IMPROVE YOUR CREDIT RATING. Our purpose is to help you get OUT OF DEBT, not to help you get DEEPER INTO DEBT. YOUR CREDIT WILL LIKELY GET WORSE BEFORE IT GETS BETTER. If your accounts aren’t delinquent now, they will be before you settle any accounts. If they are delinquent, they will become several months more so before any creditor will give a substantial discount. Why would a creditor offer a reduction in the balance if the payments were current and the creditor had no reason to believe it might not get paid? Having your accounts become more delinquent is likely to reduce your credit score. YOUR CREDIT PROBABLY WON’T BE PERFECT EVEN AFTER YOU HAVE SETTLED ALL YOUR DEBTS. Debt settlements may result in derogatory marks on your credit report. Once a debt is settled, your credit report could show “settled for less than full amount,” "paid not as agreed," or "paid settled.” (Logically, it seems that this would be better than having a lot of unpaid charge-off’s on your record, but once again, that is unknown, and JLG was not hired to deal with credit reporting agencies or resolve disputed listings on your credit report.)
Q. Does Johnson Law Group keep my information confidential?
A. Absolutely. The Johnson Law Group strictly maintains your confidentiality at all times and are bound by the California Rules of Professional Conduct. We only disclose information to those persons that you have authorized. All creditors that you have authorized us to settle with on your behalf will be contacted by us and advised that you have retained the Johnson Law Group to represent you in your debt relief program.
Q. Do I have to be delinquent with my debts to be eligible for your debt settlement program?
A. No. We can begin working with you before your accounts are delinquent. However, it is unlikely that a creditor will settle any particular account until it is a few months delinquent.
Q. How do I get approved for your debt settlement program?
A. The Johnson Law Group's debt relief alternatives are not for everyone and everyone is not for us. If you are in debt, employed, and serious about resolving your debt, you should take the first step and contact us for a free consultation. We will advise you of your acceptance into the debt settlement program and/or other options available to you. We only accept clients who, based on our financial analysis, can receive significant financial benefits from participating in our program.
Q. How much does the debt settlement program cost?
A. The fees for each debt settlement case vary based on the complexity of your financial situation and the efforts that will be required for us to assist you to zero debt. Prior to committing to our program you will receive a detailed written statement of all fees to be charged for our services. We only accept clients who can significantly benefit by participating in the program. For more detailed information about our debt settlement program fees please call 1-866-862-7870.
Q. Does the debt settlement program work for all of my creditors?
A. No firm can guarantee that every creditor will accept an offer to satisfy your outstanding debt. The Johnson Law Group and its affiliates have years of experience and have settled millions of dollars of debt. For more details on what you can expect from our debt settlement program, click here for a free consultation.
Q. Do I have to include all of my debts in the debt settlement program or can I choose only the ones I would like you to resolve?
A. No. With our debt settlement program you can select which accounts you would like us to settle for you. This will be discussed during your free consultation.
Q. Will all of my debt be eliminated when I finish the debt settlement program?
A. When you follow all of our debt settlement procedures you can expect to have zero balances on all unsecured accounts that you've contracted the Johnson Law Group to resolve. You will still be responsible for any debts that you did not retain us to settle.
Q. What can I expect as a result of your debt settlement program?
A. You can expect a substantial reduction in what you owe to your creditors. While each case is different and results vary, the Johnson Law Group debt settlement program typically settles client debts for 40% to 60 % of the balances owed. Keep in mind that while there are no absolute guarantees, we only take on cases where there is a potential for significant benefit to the participants. The first step toward Debt Relief is a phone call away.
Q. How does debt settlement compare to bankruptcy?
A. A Chapter 7 Bankruptcy would eliminate most of your debt with no repayment. However, it is more difficult to qualify for a Chapter 7 under the new Bankruptcy laws. The odds are that if you can afford to pay back a significant portion of your debts, you would not be allowed to file a Chapter 7. Under a Chapter 13, you would pay off all or a portion of your debts over a three to five year period. The disadvantage with a Chapter 13 is that you must pay the amount that the Bankruptcy Court orders you to pay, rather than the amount you want to pay.
Generally, Bankruptcy was considered to be your last resort, after all other solutions have been explored. Bankruptcy can have a devastating effect on your credit rating that can last for ten years. Debt settlement is a bankruptcy prevention program that provides you with financial freedom without the long-term effects that come with bankruptcy.
Q. Are your debt settlement services guaranteed?
A. Neither the Johnson Law Group nor any other law firm can offer a 100% guarantee that our debt settlement services will work for you. That said, before we accept your case we will perform a thorough analysis of your cash flow and debts. When we can help you with our debt settlement program we will, and if we don't think we can help you, we won't accept you into our program. The Johnson Law Group and its affiliates have settled millions of dollars of consumer debt.
Q. How can I be sure the debt settlement program will work?
A. The Johnson Law Group takes great pride in, and our reputation is built on, providing debt relief and getting our clients out of debt and helping them avoid bankruptcy and debt consolidation. After analyzing your financial situation you will either be accepted into the debt settlement program or we will advise you of your best options. This will be discussed with you during your free consultation.
Q. What is the difference between unsecured debt and secured debt?
A. Unsecured debt generally arises out of a contract entered into with a creditor that enables you to obtain goods and services on credit in exchange for your promise to repay the creditor. Credit card debt, medical loans, and personal loans are the most common types of unsecured debts. If you are delinquent with this type of debt the only recourse the lender has is legal action. A secured debt is a loan where the creditor retains a security interest in your property such as a house or an automobile. If you fall behind on payments with this type of debt the lender has the ability to repossess the property in order to mitigate their damages. If your property is repossessed and sold you remain liable for any deficiency balance that remains after the sale. Certain exceptions apply depending on the nature of the security interest. The laws regarding home mortgages vary from state to state and the lenders' rights usually depend on the terms of the mortgage and whether any other lenders have an interest in the real property. In these situations it is important to seek legal advice to protect your interests.
Q. Will I continue to get calls and collection letters from my creditors?
A. Once you are accepted into the debt settlement program we will provide your creditors with the appropriate correspondence to let them know that we are representing you and that any further phone calls should come to us and not to you. We cannot guarantee that creditor calls will stop completely, but it has been our experience that we are able to substantially reduce your creditor calls within a few weeks.
There is no law that prevents creditors from sending written correspondence to you. Do not be afraid to read these letters. In fact, it is important that you read each letter carefully as you are certain to get settlement offers from your creditors as a result of your admittance to our debt settlement program. These settlement letters and any other letter of concern should be forwarded to the Johnson Law Group's Client Relations Department.
Q. Will the Johnson Law Group contact all of my creditors on my behalf?
A. Yes. Once you are accepted into our debt settlement program we will send a letter to each of your creditors advising them that you have retained our firm to represent you. We will demand that they cease all communication with you and that all future correspondence be directed to our office on your behalf.
Q. Will interest charges continue to accrue on my debts while I'm completing the debt settlement program?
A. Yes. Creditors may raise interest rates; and late fees, penalties and interest may continue to accrue while you are in the program. However as a practical matter, in most cases the Johnson Law Group's skilled debt relief specialists will get your creditors to remove these charges while significantly reducing your principle balance as well.
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