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Louisiana Debt Relief FAQ’s

Will late fees and interest still accrue on my accounts?

Yes. Any legitimate fee or interest will still be incorporated into your debt settlement program. Typically, creditors will still record fees and interests only until they have charged off your accounts. But don’t worry, because our program’s goal is to significantly reduce the amount of your debt to the extent that these fees will no longer matter.

What if my creditors won’t settle?

It is not likely for creditors to deny a debt settlement offer. This is because, like all businesses, credit institutions are more likely to accept a fraction of the entire debt than not receive anything at all when the debtor files for bankruptcy.

The most likely reason why creditors would reject a debt payment proposal is that they want to offer a counter-proposal that better serves their interests.

Does Debt Settlement have a negative impact on my credit history?

Yes. Generally, accounts with debt that undergo debt settlement are charged off, which is typically a bad note for credit bureaus. However, once your creditor has notified the bureaus that you’ve settled your debt, you can immediately begin rebuilding your credit reputation.

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

Some creditors are cooperative once a debt is under a debt settlement program. But take note that a program does not guarantee that you won’t get any more calls. As your debt management company, we can provide you the tools you need to help reduce creditor harassment through calls and any collection effort.

Will this program stop legal action against me?

No. Unfortunately, even if a debt settlement program is active, creditors may still pursue legal action against you. They still have the right to do so.

A debt settlement plan cannot guarantee immunity from lawsuits. What we can guarantee as your debt solutions company; however, is that the debt settlement process will continue and that we are still 100% focused on the main prize, which is to settle your debt once and for all.

Facing lawsuits is one of the scariest complications that can come out of debt. We advise you to get competent legal help from experienced attorneys to protect your interests against creditor legal intimidation. Meanwhile, what we can do on our part is to maintain the quality of our work in managing your debt settlement program even during the period of legal action.

Who is Qualified?

Our debt settlement program is only available for people who are having difficulty with their finances. So people who are just late in payments or those who have very low to zero capability of paying back their debts will not qualify.

How do I apply?

Complete our online form so our debt specialists can evaluate your case. If we deem your financial situation to be eligible for a debt settlement program, we will contact you immediately.

What will I pay for your service?

The fees for our service will be based on the debt amount involved in the debt settlement program. It will be incorporated into your monthly debt payments. We assure you that full transparency of these fees will be available, and no official commitment shall be final without your signature and approval.

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

If the amount of debt that gets eliminated in your debt settlement program amounts to at least $600, you are required to report this amount as “income” in your tax return. The creditor is also required to report this to the IRS. If you were insolvent for some time, debts, including fees and interests, can be written off as “income” in your tax return.

Refer to: www.IRS.gov Publication 908, Form 982.

Can I still use my credit cards?

No. All credit accounts involved in the program cannot be used. If you are under a debt settlement program, it is best if you don’t conduct any more credit activity to not cause any complications.

Call Optimal Debt Solutions today at (504) 800-8212 for your Free Evaluation!