1. What exactly is “debt resolution”?
Debt resolution is a form of a “financial workout” for consumers where our law firm negotiates directly with creditors. We customize an affordable plan for our clients to repay their creditors. Our debt resolution program frequently is able to decrease the total amount of debt owed by our clients.
2. What types of debt can be resolved?
All unsecured debt including credit card debts, lines of credit, medical bills and personal loans can be resolved and substantially reduced. We may also be able to help you with secured debts.
3. Will debt settlement stop creditors from harassing me?
Although we cannot guarantee that all creditors will cease calling you about your debt, we immediately send notice to all your creditors that you are represented by a law firm and that they should only contact us regarding your debt. If any creditors contact you after we have given them notice, simply tell them you are represented by our law firm and to contact us directly. If any collection agency continues to harass you, contact us and we will protect your rights under federal law.
4. When does LHDR begin negotiating down my debt?
Once you have fully retained our services, we will send letters to your creditors notifying them that we are now representing you and we will then begin negotiations.
5. Will this program have a negative effect on my credit?
All debt management programs will have a negative effect on your credit. Any time you do not pay your exact obligation to your creditors your credit is negatively affected. However, once your individual accounts are settled, your creditors are required to report this information to all major credit reporting bureaus to update your individual credit report. This allows you the opportunity to start to rebuild your credit at that time.
6. How long will it take me to become debt free?
It typically takes about 30 to 40 months. However, it could be much sooner depending on your particular situation.
7. What if my creditors will not settle?
Creditors know that if they are unwilling to negotiate the terms of your debt, they will most likely get nothing. They realize that at a certain point, they have to make reasonable concessions. Most Creditors are willing to settle very quickly. In the rare event that a creditor will not settle with our initial offer, they will usually return with a reasonable counter offer. Creditors know that if you choose to file bankruptcy, they will receive absolutely nothing, and that is what creditors are trying to avoid.
8. Are there any guarantees?
Because we are a law firm, we cannot make any promises or guarantee results. However, we do have minimum performance standards that if we cannot settle your debts for 65% or less of what you owe, you will not pay our fees for settling that particular account and we will still resolve the debt to the best of our ability on your behalf.