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FREQUENTLY ASKED QUESTIONS |
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CDS Debt Resolution
Debt Settlement Program
Our debt settlement program is designed for people who have had a severe financial hardship and want an alternative to filing bankruptcy. Below is a description of how the program works. However, before you make any decisions we strongly recommend that you read and review all of your options. Speak with one of our experienced debt consultants who can explain the program in detail and see if you qualify.
Q. Who is qualified for our program?
A. CDS Debt Resolutions' debt settlement program is only only for people facing financial HARDSHIP. This means people who are late on paying their debts or have little or no ability to pay their debts, as structured, and could face potential bankruptcy. ^top
Q. Who is NOT qualified for our program?
A. CDS Debt Resolutions does does not advocate that any person default on their debt. This program is not designed to negotiate debt for people who have reasonable means to pay off their debt. If you have the ability to pay your debt in the normal fashion, then you should honor your debt and do so. ^top
Q. How do you apply?
A. Complete the form online. A debt consultant will review your information and call you to review your situation. After a debt consultant has reviewed your material and hardship, they will determine if you are qualified for a program. ^top
Q. How will CDS Debt Resolutions settle my debts?
A. This depends on the program you are enrolled in, Debt Counseling or Debt Settlement.
Our first goal will be to establish that you actually fit into a particular program and can be approved. Once approved in Debt Counseling, the client will send us their revised, single payment. We, in turn, will break that payment up into the appropriate amounts and send payment to the creditors per the revised agreement. This will continue until balances have been repaid in full.
In a Debt Settlement program, you will be asked to put aside and save a set amount of settlement funds on a monthly basis. Like Debt Counseling, this amount will be determined in your initial analysis. In Debt Settlement, each person’s situation is different and the negotiation process will begin at different times depending on the amount of your debt. Once the creditors agree to a settlement amount, we will present this offer to you. If you approve of the settlement, we will instruct the creditor to put the offer in writing so we can execute. Debts can be settled two different ways; lump sum or a term settlement. One lump sum is just that, on payment and the account is paid. A term settlement is a settlement which is paid over an extended period of time until the account is paid. ^top
CDS Debt Resolutions strongly encourages you to read our Debt Settlement FAQ.
Important facts you need to know about Debt Settlement.
Q. Who can join CDS Debt Resolutions' program?
A. CDS Debt Resolutions' debt settlement program is a hardship program. These are only for people who:
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• Have a financial hardship
• Are late paying their unsecured debts
• Have no ability to make payments in the future, as structured
• Bankruptcy is their only other choice |
Examples of qualifying hardship are loss of income, medical emergency, death of a family income earner, divorce, and increased interest rates and/or minimum payments to the point of creating negative cash flow.
If you are currently meeting your monthly debt obligations and can continue to do so, then a Debt Management program is NOT for you. ^top
Q. Is bankruptcy a better option for me?
A. Anyone considering our programs should consider also contacting a bankruptcy attorney to determine if their situation warrants filing for bankruptcy. A debt management program does not guarantee that you will not have to file for bankruptcy in the future. ^top
Q. Does Debt Settlement have a negative impact on my credit?
A. In a Debt Counseling program, if a debtor is currently behind on their payments to their creditors and is accepted into the Debt Counseling program, most creditors will “reage” the debtor’s account after a series of on-time payments so that the account is no longer reported as past due.
In Debt Settlement, your credit score will continue to decline. How much it will decline depends on your original circumstances. Most of the accounts you place into negotiation are likely to charge off, which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. After all debts have been settled and paid, the credit score should begin to improve since the negative items have been resolved. A high credit score is desirable to have, but if you have a financial hardship and are unable to pay your debts, then your first priority should be to get back on your feet financially by resolving your debt issue. ^top
Q. Can I still use my credit cards?
A. All credit cards in either program will not be active and you will not have credit privileges. On a very limited basis, you may keep credit cards out for emergency purposes. A certified Debt Counselor can guide you on what is feasible and what is not. ^top
Q. What will I pay for your services?
A. Again, it will depend on the program. In a Debt Counseling program, there is an upfront fee followed by a monthly management payment until program completion.
Settlement requires a series of payments toward fees and the balance of fees stretched throughout the first year and a half of the program. All costs and fees are always fully disclosed and you are required to sign for approval before you commit to our program. ^top
Q. Do you guarantee that you settle all of my debts?
A. NO. There is no guarantee that your creditors will negotiate with us or that your debts will be reduced. ^top
Q. Can I be sued?
A. This question is really aimed at settlement. Your creditors have the right to recover their money, so yes, they can sue. But usually, the purpose of the lawsuit is to force a settlement on the matter. In our experience, most creditors would rather not go to the expense of suing and simply try to negotiate a settlement. ^top
Q. Can CDS Debt Resolutions stop my creditors from calling?
A. Again, this question is directed at settlement. Your creditors have the right to try to contact you in order to collect a debt. We cannot stop that. However, if your account is in collection status, collection agencies have to adhere to the FDCPA guidelines. These guidelines exist for your protection and we have the resources to hold creditors accountable. ^top
Q. Does CDS Debt Resolutions repair my credit?
A. No. We are a Debt Management company. As a consumer, if you strictly have collection debt, the process of settling on that debt or enrolling it in a Debt Counseling program can be beneficial to your credit score, but no company can remove legitimate negative items from your credit. A settled and/or paid account is better than an unresolved delinquent account and your credit score should improve after successful completion of our program. ^top
Q. Can creditors garnish my wages?
A. This question is directed towards debt settlement. A creditor that is owed money can petition for wage garnishment in the States that allow it. However, this can be a long and expensive process for the creditor. If you are willing to work with your creditors, wage garnishment can normally be avoided. ^top
Q. What are the tax consequences?
A. A creditor can report cancelled/settled debts exceeding $600 to the IRS and you would be required to report the same as income on your annual tax return. However, the IRS permits you to write off any “income” from cancelled debts up to the amount by which you were “insolvent” at the time. You need to consult your own tax consultant for advice specific to your situation. ^top
Q. Can't I negotiate my debts with my creditors on my own?
A. Yes, you can. As a matter of fact, if you successfully negotiate a debt, it may cost you less in the long run than using our services. You should note, however, that Debt Counseling and Debt Settlement can be a long and complex process. Our debt negotiators have the skills and knowledge of how your creditors negotiate and they have many years of experience negotiating debt resolution programs. You don’t have to spend all of the time and effort trying to negotiate with your creditors and you can rely on our experience to get the best program outcome possible for you. ^top
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TESTIMONIALS |
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What are people saying about CDS Debt Resolution? |
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Not only were you [Nicole] polite & professional but answered every question I had in a timely manner. I think you are terrific & a great asset to the company, although I have to say I hope this is the last time we have to do business :)
Thanks again for everything you have done for us, you're great!!!
David Y.
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Thank you for your assistance & persistence! I never felt pressured. In fact, your follow-up reminded me that I had an option other than bankruptcy.
John K. |
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Thank you for your professional, friendly & informative service. I called other companies inquiring about their programs... Your service topped all of them!
Stacey B. |
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Steve has been an absolute joy to work with. He is compassionate, caring & thorough. He went through the program with me step by step, answered the million questions & concerns I had (& continues to do so), & put me at ease.
Tracey K. |
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I would like to say that everyone that I have talked with, whether in the Customer Service or anywhere else, have been very professional & has treated us with understanding & empathy.
Kevin D. |
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