2)
Can I use my credit card to pay for the debt relief process? 3)
Can I hire the Allegro Law Firm directly without
CDLS? 4)
How much does the debt negotiation service
cost? 5)
I
want to reduce my debts through the law firm, but do I have to meet with an attorney
or go to court? 6)
Should I refinance my home with a debt consolidation loan to pay
off the credit cards? 7)
Would Consumer Credit Counseling Program (CCCS) be a better way to
go than attorney debt negotiation? 8)
When should I stop using my credit cards? 9)
When will my payments start being dispersed to pay my different creditors? 10)
Is attorney debt negotiation legal and ethical? 11)
How are the attorneys able to negotiate my debts? 12)
Does the debt reduction process affect my ability to purchase or
refinance my home? 13)
Is bankruptcy a better alternative to debt settlement? 14)
How effective is your attorney debt reduction program? 15)
Does it matter that I am in collections? 16)
Do I have to enroll all of my credit cards? 17)
Should I continue to make payments to the
credit card companies once I have enrolled my cards in the debt negotiation process? 18)
Will I owe money to the IRS for my reduced debt? 19)
Why would
a consumer enroll into a debt settlement program? (opens new page) 20)
How is the law firm's program
different from other consumer debt negotiation programs? (opens new page) 21)
How will the debt settlement
process affect my credit score? (opens new page) 22)
Why should I hire a law
firm to manage the settlement of my debts? (opens new page) 23)
What's the worst case scenario
of a debt settlement service? (opens new page) 24)
Can I perform a debt
settlement successfully on my own? (opens new page) 25)
Can a credit card
company garnish my wages? (opens new page)
1)
Q: Why is the law firm able
to settle for so much less than other debt settlement companies? A:
Firstly, it is highly recommended when you seek debt relief you are dealing
with licensed attorneys. Not only do our attorneys achieve the most aggressive
settlements through their legal strategies, but the attorneys also settle millions
of dollars in debt every month for hundreds of consumers. top 2)
Q: Can I use my credit card to pay
for the debt relief process? A:
No. Payment via credit card is not acceptable. You can pay for the attorney's
services through an Electronic Funds Transfer (EFT) directly from your checking
or savings account. Top 3)
Q: Can I hire the Allegro Law Firm
directly without CDLS? A:
The short answer is no. Allegro Law is a private organization. They do not enroll
consumers directly. Essentially, we are part of their overall service. CDLS has
certain responsibilities to carry out prior to your enrollment. Retaining the
Law Firm's debt settlement service is much like the process of buying a new car.
You can't go directly to the manufacturer, but you can go to the dealership. In
this sense, CDLS is much like a dealership for the Law Firm. Top 4)
Q: How much does the debt negotiation
service cost? A:
Attorney fees come from the money you already owe to creditors, so you won't have
to write out a separate check to pay for the debt relief services. The Law Firm
charges a percentage of your total debt you enroll into the program plus a $59
monthly service fee. Once enrolled into the settlement program, all fees and payments
are included with your new monthly payment. There are no large lump sum, upfront
costs. See monthly payment schedule. Top 5)
Q: I want to reduce my debts through
the law firm, but do I have to meet with an attorney or go to court? A:
No, this is not bankruptcy. You will execute a Power of Attorney that enables
the Attorneys/Lawyers to represent you. The Law Firm will communicate directly
with your creditors and debt collectors on your behalf. You will have telephone
access to the Law Firm's Customer Service should you have any questions during
the entire settlement process. In some instances you may speak with an Attorney
over the telephone, but you will not have to meet with a Lawyer or have to go
to court. Top 6)
Q: Should I refinance my home with
a debt consolidation loan to pay off the credit cards? A:
We encourage you to thoroughly investigate all of your options. Keep in mind that
when you refinance your home with a debt consolidation
loan to pay off your debts, you are changing unsecured debt into secured debt.
This puts your home at risk should you not be able to make the payments. Our debt
negotiation service allows you to reduce your debt without risking your home.
Top 7)
Q: Would Consumer Credit Counseling
Program (CCCS) be a better way to go than attorney debt settlement? A:
We don't think so. Consumer Credit Counseling Programs have over a 79% drop out
rate and clients of these services often have resort to bankruptcy. Consumer Credit
Counseling Services are typically not provided by attorneys and result in the
repayment of all of the original debt, in addition to interest and fees. The debt
settlement program provided by the attorneys is far more aggressive. And has a
much much higher success rate. Top 8)
Q: When should I stop using my credit
cards? A:
Once you have signed up with the debt negotiation program and have stopped making
payments to your creditors, it is recommended that you stop using those cards
immediately. Top 9)
Q: When will my payments start being
dispersed to pay my different creditors? A:
The attorneys manage all negotiations and financial transactions on your behalf
with your creditors. We can not say for certain when those negotiations will be
complete. Most cases are resolved starting thereafter 12 months.
Top 10)
Q: Is attorney debt settlement legal
and ethical? A:
Yes. Attorney debt settlement is a legal and ethical process whereby qualified
attorneys reduce unsecured debts owed by consumers. It's a service that thousands
of people take advantage of in order to get their lives back on financial track.
Many consumers that enroll into the service want to avoid bankruptcy or just want
professional debt relief. Top 11)
Q: How are the attorneys able to
negotiate my debts? A:
The attorneys are experts in Federal and State consumer laws. These are the laws
that govern the credit card companies, lending institutions and debt collection
agencies. In most cases a consumer's Federal rights are being violated on a regular
basis and the consumer simply doesn't know it. Whether it be the inability to
produce a contract, a miscalculation of the interest on your bill, or the methods
a collection agent uses, the attorneys identify these Federal violations and aggressively
use them to negotiate on your behalf. The creditors and debt collectors don't
want to go to court to try to explain why they violated your rights, so they make
the smart business decision to settle your account for much less than what is
owed. Top 12)
Q: Does the debt reduction process
affect my ability to purchase or refinance my home? A:
Since sub-prime mortgage loans (less than perfect loans) are not easy to qualify
for anymore, it is recommended that you do not begin the program until after purchasing
or refinancing is complete. That way the service can in no way affect the terms
of your loan qualifications. Top 13)
Q: Is bankruptcy a better alternative
to debt settlement? A:
Possibly, depending on your circumstances. However in most cases it is not because
bankruptcy has a long term negative impact on your credit worthiness and can be
a demoralizing process. In addition, the new bankruptcy laws make it almost impossible
to put credit card debt into a bankruptcy filing. Bankruptcy is a huge step with
implications that will last for many years, so check it out with caution. We do
not give legal advice so if you are considering bankruptcy you should see a bankruptcy
attorney. Top 14)
Q: How
effective is your attorney debt reduction program? A:
To date, the debt reduction techniques the law firm uses to negotiate your unsecured
creditor debts has worked 100% of the time. The attorneys have vast experience
working with banks and other financial institutions as well as merchants, vendors
and suppliers to resolve and settle unsecured debts. Top 15)
Q: Does it matter that I am in collections?
A: In
most cases No. Most of the accounts that the attorneys settle are ones that are
with third party debt collectors. However, if you have already made payments to
the debt collector for a certain debt, the attorneys will have to take a closer
look at that particular situation to determine if they can help. Top 16)
Q: Do I have to enroll all of my
credit cards? A:
No, you can choose the cards that you want to enroll. However, you should be aware
of the following: Once a card has been enrolled into the service the credit card
company will cancel that card and close the account. If you have multiple cards
from the same lending institution, the lending institution will most likely cancel
the others. If you want to keep a credit card open, it is best not to enroll that
account related to an account in the program. Top 17)
Q: Should I continue to make payments
to the credit card companies once I have enrolled my cards in the debt negotiation
process? A:
A consumer has the right to withhold payments on a debt that is being negotiated
by the attorneys. If you are already behind on payments, that is normal and does
not impact your ability to enroll the debt into the service. Top 18)
Q: Will
I owe money to the IRS for my reduced debt? A:
The IRS permits consumers to write off any "income" from canceled debts
up to the amount by which you were "insolvent" at the time. Therefore,
unless you have a positive net worth, you ordinarily are not obligated to pay
taxes on forgiven debt amounts. Additionally, for some reason you do not qualify
as insolvent, non-principal amounts such as fees accumulated on the account may
be deducted from the amount reported. IRS
resource Note: Consult your own personal tax advisor for advice specific to
your situation.
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