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1. How is my payment figured / can I get a lower payment? Historically we have averaged a certain settlement percentage. While we cannot guarantee any percentage, we usually come in lower than our benchmark. We set payments based on a total payout by you of about 60% of what you owe. We can reduce your payments, but it will take longer for you to pay fees and may delay or hinder settlements. In that respect we are flexible, but ultimately it is up to you. We recommend you pay as much as you can afford, this assures the fastest settlement.
2. What impact does this have on my credit? Settling debts for less than their face amount has a negative impact on credit. How much impact depends on where you were before you engaged in settlement negotiations and the time it took to reach a settlement. Settlements are not recommended for people who are current, have credit scores above 700, and are not about to become insolvent. If you already are in collections or have missed one or more payments, you have already done damage to your credit. Furthermore, settlement is the fastest way to get out of debt, and the only option other than bankruptcy to pay less than what you owe.
3. Why can't I do this on my own? Typically and individual can get a settlement. However, when a Law Office is doing the negotiations, the settlement percentages are far lower, and most collections attorneys understand what an attorney negotiating on your behalf has to say. What this means is that they are more likely to settle with another Law Office than with you as an individual.
4. Can I be sued? Yes, you may be sued for debts you have failed to pay. The Law Offices takes all steps to avoid this event, but unless you can immediately produce enough money for a settlement, this may be an unavoidable event. However, being sued is not the end of the negotiations. Even judgements can be settled after a lawsuit. This is especially true when using a Law Office to negotiate on your behalf.
5. Can tax debt be settled for less than what I owe? Yes. You may hear conflicting information on this issue. The IRS does not publicize that it does settle tax debt for less than the amount owed. However, the rules involved are so complicated that even many attorney cannot get settlements done. By using an experienced tax firm such as the Frederick Law Group, you can be assured that
you can get the maximum benefit in response to paying your taxes. Typically the amount you paid is directly tied to the amount you can afford to pay.
6. What if I can't afford to keep paying? Unlike any other approach to your debt, debt settlement is flexible in that you can adjust your payments. Credit counseling / debt management and bankruptcy cannot adjust your payment. If you fail to pay with them typically you are "kicked out" of the program or in default of your bankruptcy. Both may reinstate your entire debt and you no longer have an protection. What's worse is that you may not be able to go back in some circumstances.
7. Can you stop the creditors from calling? Yes and no. Yes we can always get third party collectors to stop calling you and only contact the Firm. First party collectors may continue to call you, but only under limited circumstances. If they violate these terms you can notify the Firm to appropriately address the issue with your creditor.
8. Can you settle pay day loans? Yes, but there are potential issues. First, if you have never made a payment on the payday loan, or you took many out at once, you may be guilty of a crime. We cannot defend you from a criminal charge. Secondly, payday loans are difficult to settle and usually take more time and settle at a higher percentage.
9. Can you settle personal loans? It depends on the situation. In many instances the creditor will renegotiate terms and occasionally settle the debt.
10. Can you settle taxes other than income taxes? In some, limited cases. For the most part, taxes owed on sales of goods, property, or payroll taxes cannot be settled for less unless there is a bankruptcy involved. Even then there may be legal issues attached to the failure to pay the tax.
11. What happens if I quit before I complete my settlements? You may cancel at any time with written notice. However, cancelling does not relieve you of the responsibility to pay the fees for which you contracted. It is in your best interest to promptly notify the Firm if you are having difficulties to work out the best course of action for you.
12. Can you file bankruptcy for me? Currently the Firm only files bankruptcies for residents of Maryland. The Firm can direct you to a qualified attorney who will work with you if that is what you need.
13. Is this a loan? No. The Firm does not extend credit, nor does it loan money or advance settlement payments.
14. Why do my fees cost this much? Having attorneys and paralegals trained in protecting you while negotiating on your behalf is expensive. If you were to retain an attorney on your own, the costs would be far greater.
15. What if I want to simply consolidate my bills? If you are better suited for credit counseling / debt management / debt consolidation, then the firm can refer you to a reputable non profit that can best assist you. Remember debt settlement is for you if you cannot afford a payment of about 2.5% of your outstanding debt. If you can't afford that payment, or if you are already behind or in collections, then debt settlement is a better option to explore.
16. Another company offered me a lower payment, why should I go with you? If they were not a law office, they were not offering the same service. There are many debt settlement companies that are not law offices. They do not have an attorney negotiating foryou or reviewing your circumstances in your best interest. Many for profit debt settlement companies simply drop your program if you encounter another law firm collecting on your debt, or if you get sued. The Law Group can continue negotiating on your behalf. Also, beware as their payment may not be realistic for accomplishing a settlement. If your payment is too low, chances are you will not be able both pay your fees and have any money available for a settlement. Some companies will simply sign you up for a low payment only to not be able to obtain a settlement because they undersold your payment, or they will come back later to increase your payments. We try to set a realistic payment schedule that you can both afford and accomplish your goals. Contact us today. Frederick Law Group, LLC
19650 Club House Road
Suite 202
Montgomery Village, MD 20886
Local: 301-740-3941
Toll-Free: 866-369-0251
Fax: 301-740-9163
We represent clients in Maryland cities such as Frederick, Annapolis, Aspen Hill, Baltimore, Bethesda, Bowie, Carney, Chevy Chase, College Park, Columbia, Dundalk, Ellicott City, Essex, Gaithersburg, Germantown, Glen Burnie, Greenbelt, Hagerstown, Laurel, Olney, Potomac, Rockville, Silver Spring, South Gate, Takoma Park, Towson and Wheaton. We also represent clients in Frederick County, Anne Arundel County, Baltimore County, Howard County, Montgomery County, Prince George's County and Washington County.
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