Why should I hire a law firm and not some other company?
Remember the 3 “Ps” on our introductory page; they stand for Professionalism; Protection; and, Performance. Why wouldn’t you want the best to assist you? You deserve a law firm that it is bound by ethical obligations to assist you to the fullest extent possible and understands the law to protect your rights. Once The Law Center is retained by you, you and will have a staff performing the negotiations on your behalf.

Do I qualify for debt settlement?
The Law Center Program is designed for people who have fallen behind on their unsecured debts, who can’t afford a debt management plan payment, and do not qualify for bankruptcy. If you have or are in danger of falling behind, and bankruptcy has been considered, but is a distasteful option for you, then, debt settlement is a very real option and you should call to determine if you qualify. Amongst the debts handled by The Law Center are credit card debts, store card debts, personal loans, medical bills and miscellaneous personal debts. The success of The Law Center program often depends upon the nature of the debt and the willingness or unwillingness of the creditor to negotiate. Each creditor has different policies concerning different debt. The Law Center’s familiarity with such policies assists us in negotiations.

How will this effect my credit?
The Law Center is not a Credit Repair Organization and the scope of our work is to settle you debts through negotiations. The Law Center will not contact any of the credit reporting agencies on your behalf. There are other companies that specialize in credit repair, which can be found on the Internet or through other sources. That stated, as a general rule, when you pay less than your full debt, your credit rating will decline as a result of creditors writing it off as bad debt, even though it is pursuant to a settlement. Most clients who retain The Law Center have already suffered some “credit damage” as a result of falling behind on their minimum payments. While concerned with credit scores, most clients see the much bigger picture as avoiding bankruptcy and the long-term elimination of debt.

Will there be tax consequences?
Creditors are supposed to report canceled debts over $600 to the IRS and you are required to report the same as income on your yearly tax return. This can become somewhat intricate and is a question best left to your tax preparer as there are issues related to income and insolvency which are too technical to be detailed here.

Will I be sued and my wages garnished and my property attached?
A creditor can sue you and seek to obtain a judgment. However, this is a costly process for a creditor and one that The Law Center seeks, on your behalf, to avoid. Although we cannot prevent a creditor from bringing a law suit, we will try to intervene on your behalf as early in the process as possible. Let us advise your creditors that we are ready to negotiate a settlement. It is common sense that a creditor would want a negotiated settlement with a legally binding agreement in place, rather than to sue and try to collect a judgment. Creditors tend to use the threat of garnishment or attachment of property around as if they can do it with the snap of their fingers. To garnish wages or attach property, they first must obtain a judgment. Again, this is costly and a settlement should be preferable.

What types of debts are included in The Law Center’s representation?
Only unsecured debts, or debts without collateral, are permitted in our program. Examples of unsecured debts include: credit cards, medical bills, personal loans, department store cards, gas cards, apartment lease judgments, etc. A secured debt is one in which a creditor holds something of value as collateral, such as your home or car. We will not add these to your program. However, if the collateral is repossessed or foreclosed, we may be able to help you resolve what you still owe on the balance of the loan.

What about creditors and negotiation?
Creditors are motivated to get paid. They may say there is no negotiation but if they want to get paid, they will negotiate.

Are there debts that cannot be entered into a negotiation program?
Any kind of secured debt, whether it is a mortgage, car loan, household appliances; student loans, which cannot be discharged in bankruptcy normally cannot be negotiated down; Business accounts, cash advances on credit cards, accounts open for less than 9 months, certain personal loans with government agencies will not be included in The Law Center’s program.
Can you try this yourself?
You can try and we wish you luck but creditors often treat you less than serious and rebut your efforts with negotiating ploys such as, “We don’t negotiate under any circumstances,” or like phrases. They offer you hardship programs, which are a joke.

Will I still be able to use my credit cards?
No. All unsecured accounts in the program must be closed as a condition of participation in our Debt Reduction Program. Clients may keep ONE emergency credit card. Use of this card should be restricted to emergency purposes.