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New Mexico Debt Relief FAQ’s

Will late fees and interest still accrue on my accounts?

Most creditors still include these additional late fees and interest after a debt settlement until your account is charged off. These fees and interest will most likely be included in the debt payment agreement we negotiate with your creditor. However, we aim to save you more money with your settlement deal than you will need to pay in fees and interest in your debt payment plan.

What if my creditors won’t settle?

Like most businesses, the main goal of credit lending companies is to gain profit. By choosing not to settle with their debtors, they might risk losing any sort of return on investment once the debtor could file for bankruptcy and fail to pay even just a fraction of their debt. So in the credit business, creditors are more likely to agree to a settlement even if they won’t be able to receive the original amount owed to them because it’s better to get half the amount than not receive anything at all. They can, however, reject the initial settlement plan that we will offer. But they will most likely provide a different agreement that will still benefit the debtor in some way.

Does Debt Settlement have a negative impact on my credit?

Debt settlement negatively impacts one’s credit rating. A charged-off account generally means that the debtor who owns the account has been a liability that the crediting company cannot continue working with anymore. So, even after you negotiate a settlement plan, this status is already a bad mark on your credit. Once you’ve paid back the debt, the creditor will notify the credit bureaus, and you can start rebuilding your credit again.

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

You will most likely still receive correspondence from your creditors. But once they observe that you’re cooperative and working well with us, the calls and collection letters may be reduced. Don’t worry, Optimal Debt Solutions can provide you with the right tools for handling creditor harassment, which you can use should you experience this. You can contact us for any unwarranted collection and aggressive correspondence from your creditors.

Will this program stop legal action against me?

Creditors or third-party collection agencies have the right to enforce legal actions such as lawsuits to threaten their debtors and settle their debt. As your debt settlement company, we cannot guarantee that legal actions won’t be filed against you, but we know how to lessen the possibility and instances of such actions. We are more focused on settling your debt as soon as possible, even during a lawsuit filed by your creditors.

It is crucial to note that the possibility of filing a lawsuit depends on the creditor and your case. These legal actions are often used to threaten debtors. And more often than not, lawsuits are carried through because it’s illegal to threaten the debtor if the creditor has no intention to sue, only to intimidate.

What we can guarantee is that your debt settlement will be handled with professional excellence. We can continue negotiating and communicating with your creditors even while the lawsuit is being carried out. When you’re facing legal action, it is understandable to lose track of the main issue, which is your debt. But you don’t have to worry. We know that these situations can be solved. In such cases, we highly recommend that you get the services of a lawyer while we continue to work on your debt.

Who is qualified for the program?

Only people who are having difficulty managing their finances and paying their debts are eligible for a debt settlement program. People who are just a little late in payments are not qualified. Those who have considerably zero chances of paying their debt even in the future are more likely to end up filing for bankruptcy.

How do I apply for the program?

The only thing you have to do is fill out the online form. One of our debt experts will review your application. If your financial situation is deemed to be eligible for a debt settlement program, we will contact you as soon as possible.

What will I pay for your service?

The fees for our services will be based on the total amount of debt involved in the program. The fees will be included in your monthly debt settlement payment. Rest assured that all fees will be properly disclosed. Your signature of approval will be requested before the finalization of our program.

Can I still use my accounts when I enroll in the program?

The IRS requires Original Creditors to report canceled debts amounting to more than $600. Debtors are also required to report their canceled debts as income on their tax returns. However, if you are considered insolvent (unable to pay) during the time of the cancellation of your debt, you are allowed to exclude that amount of “income” (canceled debt). Unless you have a positive net worth, you won’t be required to pay for that “income” tax. Furthermore, any non-principal amounts, such as accrued interest and other fees, won’t be included in the total canceled debts or tax return “income” if you were not considered insolvent at any time in the entire period.

Refer to: Publication 908, Form 982.

Can I still use my credit cards?

No. All credit cards and accounts that we’re trying to settle in the program will be deactivated. It will be beneficial for you to refrain from using any other credit accounts to avoid complicating your debt settlement case.

Call Optimal Debt Solutions today at (505) 257-6551 for your Free Evaluation!