California Debt Solutions FAQ's

Will I continue to get calls and collection letters from my creditors?

Yes, you might continue to receive calls and collection letters from your creditors, especially during the initial stages of the debt relief process. When you enroll in a debt relief program, our team at American Consumer Solutions™ will work to communicate with your creditors and inform them that you are working towards a resolution. This can lead to a reduction in collection calls and letters over time.

However, it’s important to note that until settlements are reached with your creditors, they may continue their collection efforts. Once settlements are successfully negotiated and payments are made, these communication attempts typically decrease. Our team will actively engage with your creditors on your behalf to find solutions that work for you, allowing you to regain control over your financial situation and reduce the frequency of these communications.

Will this program stop legal action against me?

Enrolling in a debt settlement plan can potentially help halt or delay legal actions from creditors, but it’s not guaranteed to do so. When you join a debt settlement program with American Consumer Solutions™, our team will work to negotiate with your creditors and find a resolution that can satisfy both parties. This negotiation process may involve discussing potential legal actions and finding alternatives to litigation.

However, it’s important to be aware that creditors still have the right to pursue legal actions if they choose to do so. Debt settlement is not a legal protection against all forms of legal action, and the outcome can vary based on the specifics of your situation, the creditors involved, and the laws in your state, such as in California.

Our experienced team will strive to reach agreements that are in your best interest and help you navigate the complexities of debt resolution. While a debt settlement plan can help alleviate financial pressure and potentially reduce the likelihood of legal actions, it’s essential to stay informed and prepared for all potential outcomes.

Who is qualified?

Debt settlement programs are generally designed for individuals who are facing significant financial hardship and struggling to repay their debts. Qualification criteria can vary, but typically include:

1. Financial Hardship: Individuals experiencing genuine financial hardship due to job loss, medical expenses, divorce, or other significant life events are often considered eligible.

2. Unsecured Debts: Debt settlement primarily applies to unsecured debts, such as credit card debt, medical bills, personal loans, and some types of private student loans.

3. Delinquent Accounts: Typically, creditors may consider debt settlement options when accounts are delinquent or in danger of default.

4. Limited Ability to Repay: Individuals who can demonstrate a limited ability to make regular payments or who are facing high interest rates may be candidates for debt settlement.

5. Lump Sum Payment: Some debt settlement programs require individuals to have a lump sum of money available to negotiate settlements with creditors.

6. Willingness to Negotiate: Applicants should be open to negotiating with creditors for reduced payoff amounts.

7. Consultation with Professionals: It’s advisable to consult with debt relief professionals or credit counselors to assess whether debt settlement is a suitable option based on one’s financial circumstances.

Keep in mind that eligibility criteria may vary depending on the specific debt settlement company, program, or state regulations. It’s important to thoroughly research and consult with reputable debt relief professionals before making any decisions.

How do I apply?

To initiate a review of your situation and determine your eligibility for our debt settlement program, please fill out our online form and submit it to us. Our team of debt specialists will carefully assess your application to determine if you meet the criteria for our debt relief program. Should you meet the qualifications, we will contact you to discuss the next steps in the process.

What will I pay for your service?

The service fees are encompassed within your monthly payment plan. These fees are calculated according to the overall debt enrolled in the debt settlement program. We will provide a transparent breakdown of all fees integrated into your monthly payment plan, ensuring complete clarity. Before commencing the debt settlement plan, we will comprehensively outline the procedure, allowing you to grasp the process. Your approval signature will be sought prior to proceeding with the debt settlement plan.

When I enroll in the program, what will happen to my accounts? Can I still use them?

When you enroll in our debt settlement program, your accounts will undergo negotiation with your creditors to reduce the outstanding balances. While this process is ongoing, you may experience restrictions on the use of those accounts, which could include temporary suspension or limited access. However, once settlements are reached and payments are made, these accounts will typically be considered resolved. Keep in mind that the exact impact on your accounts can vary based on your specific situation and the terms negotiated with your creditors. We’re here to guide you through this process and address any concerns you may have.

Learn more about this topic by checking www.IRS.gov Publication 908, Form 982.

Can I still use my credit cards?

During the debt settlement process, it’s generally advisable to refrain from using your credit cards. As part of the debt settlement strategy, you’ll be working towards reducing your outstanding balances, which may involve negotiations with your creditors. Continuing to use your credit cards during this time can complicate the negotiation process and potentially affect the outcome. It’s recommended to focus on your debt settlement plan and work towards your financial goals without incurring additional charges or debts. Keep in mind that each individual’s financial situation is unique, so it’s best to discuss your specific circumstances with our debt specialists for personalized guidance.