Frequently Asked Questions
Q. I have too much debt! What do I do?
A. There are many options available to consumers with unwieldy debt.
Remember, however, that not all solutions are created equal. It is
best to speak with our experienced professionals to determine what
your best options are in confronting your debt. Sometimes bankruptcy
is the only way to get out from beneath the load. More often,
however, there are options, like debt settlement or credit
counseling that may fit your needs better and may have a less
negative impact on your credit.
Please call us to discuss your options! 1-888-657-4588 or fill out
the form below
Q. What's going to happen to my credit?
A. Most debt relief options will have a negative impact on your
credit score. Bankruptcy will have the longest and most significant
impact. Credit Counseling, on the other hand, may leave your credit
in much better shape. Since debt settlement is usually recommended
to those who are already delinquent on debt payments, this will have
a similarly negative impact on your credit. Every individual's
situation is different. Erasing debt through bankruptcy or asking a
creditor to forgive significant portions of your debt will have
negative consequences on your credit.
It is very important to make a fully informed decision regarding
debt relief. Please talk to us.
Q. What about my taxes?
A. There are often tax implications when pursuing debt settlement.
The federal government considers the portion of debt that is
forgiven in this process to be "cancellation of debt" income and you
will be liable for that income. Very often, however, the balance
between paying the full amount of debt vs. paying taxes on this sort
of "income" still favors debt settlement. Every individual's
situation is different, however.
Q. What's credit counseling?
A. Credit counseling differs from debt settlement primarily in that
you end up paying the full amount of your debt over an extended
period of time. Many creditors are willing to accept this solution,
including much reduced interest rates, because it allows them to
recover the majority of their debt. For those individuals who are
current on their debt, but worry that making minimum payments will
never ease their debt burden, credit counseling may be the right
option. Of all the debt relief options, credit counseling is least
likely to impact your credit score negatively.
Q. Can I stop this harassment? I'm getting calls every day!
A. While creditors have the right to contact you to attempt
collection of debt, many collectors violate YOUR rights when they
contact you. The Fair Debt Collection Practices Act spells out your
statutory rights in these situations. We will contact all creditors
within the first 30 days and let them know that we represent you and
all further communication should be directed to us and not you.
The best practice is to make a detailed record of all communication
between you and your creditors. Demand that callers identify
themselves. Do not tolerate harassment and consult with our
experienced professionals who can inform you of your rights.
For a detailed FAQ about collection calls, check out the FDCPA FAQ
for debt collection:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
Q. Can my wages be garnished? Can they take my property?
A. In most states, if you are sued on a debt, you may be subject to
garnishment of wages or garnishment of money assets. The amount of
wage garnishment varies by state and is federally capped at 25% of
your disposable earnings. Sometimes garnishment is inevitable.
Working with experienced professionals can reduce this risk,
however.
If a court issues judgment in favor of your creditor, the creditor
will try to collect that judgment in any possible way. It is
possible that the creditor will attach a lien to your real property,
such as a house. Given the enormous complexity and wildly different
laws from state to state, it is best to consult with our attorneys
to find out what options are available to you and what options are
available to creditors trying to impose a judgment against you.
Q. What if I do nothing and just hope the problem goes away?
A. Doing nothing is always an option. It is generally the worst
option, however. Creditors and Collectors are not likely to forget
debt and are not likely to stop calling if you do not take action.
Your credit score will plummet, you will be harassed and eventually
you may be sued. Instead of waiting for a potential lien on your
property or garnishment of wages, we recommend exploring better
options.
Q. Why should I trust you?
A. Trusting your debt relief to an organization is a difficult
decision. While there are many
reputable debt settlement and relief organizations, the option of
trusting a law firm with experienced attorneys is a much better one.
In addition to being bound by state and federal statutes, attorneys
are bound by the code of ethics of their respective state bar
associations. This affords you an additional level of protection
against both outright theft and negligence. Do your research and let
us earn your trust. We have an excellent rating with the BBB and no
complaints
http://www.bbb.org/louisville/business-reviews/attorneys/the-mohnsam-firm-pllc-in-shelbyville-ky-159133429/
Q. Am I going to get sued?
A. The possibility of a lawsuit is ever-present in our society. This
is particularly true when dealing with creditors who want their
money. In the vast majority of cases, creditors do not sue. However,
anyone stating that there is no chance of a lawsuit is lying to you.
As you might assume, working with a law firm such as ours with
experienced attorneys can reduce the likelihood of your being sued.
Additionally, we are committed to helping you understand the
litigation process so that you are prepared to deal with it
effectively. There are no guarantees in this business, but it is our
practice to help you reduce your debt safely without going to trial.
Q. What about bankruptcy?
A. Bankruptcy is usually considered a last resort. When your debt is
so unmanageable, your income is insufficient or perhaps you have
suffered a significant personal crisis (e.g. divorce, medical
emergencies, etc.), you can petition a court to declare you "legally
insolvent" and unable to pay your debts. Obviously, there are
significant negative implications for filing bankruptcy. When it is
appropriate, however, the benefits of filing for bankruptcy can
outweigh these significant negative impacts.
For most consumers considering bankruptcy, a Chapter 7 or Chapter 13
bankruptcy is likely to be appropriate. Each bankruptcy is an
individual matter, tailored to the consumer's personal situation,
but there are general rules for both. Chapter 7 bankruptcies require
a consumer to attempt to satisfy debts from his assets with a
court-appointed Trustee as an intermediary. In Chapter 13, you are
required to pay off most debt, but the terms of the repayment are
relaxed to suit your personal circumstances.
Given the complexity and the serious ramifications of filing for
bankruptcy, there is no substitute for consulting with an
experienced professional and discussing your options. Reducing the
negative impact and creating positive results is our job. Let us
help you.
Q. Will working with you improve my credit score?
A. Unfortunately, we cannot guarantee that your credit will
immediately become restored. We can, however, guarantee to keep you
fully informed as to how you will be affected by debt relief
options. If you are enrolled in our debt settlement programs, we
will inform creditors of each settlement, which may in turn have a
positive impact on your credit score. Engaging in one of our credit
counseling programs may have the least impact on your credit score.
Despite any effort on our part, however, a bankruptcy will have a
lengthy negative impact on your credit.
Talk to us. Let us help you understand how your credit will be
affected and what steps, if any, you can take to improve it.
Q. Okay, I signed up for X. What if I want to drop out?
A. That's okay. While we cannot guarantee results, we understand
that situations change. We offer refund policies on most of our
programs. Please note, however, that most programs are designed for
lengthy commitments (generally 1-2 years) and require a lot of
discipline and diligence to complete. If it is a matter of a payment
or two, call us to arrange something rather than letting all that
work go to waste.
The best practice for any debt relief solution is to maintain
contact with us. We want to help you.
Q. I'm confused about X. What should I do?
A. Call us! 1-888-657-4588. Once we understand your situation,
we can better suggest what method of debt relief is appropriate for
you. Let us help you take control of your life.