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Frequently Asked Questions
You have questions? We have the answers.
What does CreditArbitrators™ have to offer me compared to other debt mediation companies?
CreditArbitrators™ has one priority and that is client satisfaction. With years of experience under our belts, our team of Debt Negotiators has built trusting relationships with creditors, proving we successfully resolve our clients' debt time and again. We recognize each individual's situation is unique, and we take every detail into consideration when planning a personalized plan that works in conjunction with your budget. We know you have many other priorities in life, and our staff of Specialists will create a plan that fits a realistic time frame for you.
How do I get started?
Getting started is as easy as picking up the phone and calling one of our Specialists who will give you a free consultation, with no obligations. We want to help you first and explain how you can too become debt free. Our enrollment process starts immediately. In most cases we work directly with your creditors so you don't have to Although we cannot guarantee Creditors will not call or contact you, we will work with you to manage these calls. CreditArbitrators™ will then work with you in accomplishing your goal by producing a reasonable payment plan that will cut your payments and resolve your debt for less than what you owe, in most cases. We offer our full expertise and support throughout the entire process.
How long does it take to complete the CreditArbitrators™ program?
We recognize that each individual’s situation is unique, and we take every detail into consideration when planning a personalized program that works in conjunction with your budget. The length of time to complete the program varies with each individual. The average client will complete the program in approximately 36 months, depending on the individual’s financial situation. We are happy at any time to discuss your concerns and questions.
What happens during my initial free consultation?
Our trained and experienced Specialists will take your situation into consideration and explain how debt mediation works. We then propose a specific plan based on your personal financial history and status. From there, your CreditArbitrators™ Advisor will guide you through the rest of the debt mediation process.
How does debt mediation differ from debt consolidation?
The names may sound alike but there is a great deal of difference. Debt consolidation programs combine all of your outstanding debt into one large new loan and, in almost all cases, secure the loan with collateral of great value (such as your home). You will still pay the entire principle amount of your debt plus the accumulated interest on the new loan. If you are unable to make payments, the lending institution can repossess your collateral. In contrast, debt mediation uses negotiation techniques to greatly reduce the principle amount of your debt allowing you to pay a smaller sum than you are currently paying. Typically, debt mediation takes around 36 months to complete and debt consolidation can stretch longer depending on the size and terms of the consolidation loan.
Do I have to combine all my debts, or can I pick certain debts?
The decision of mediating some or all of your debts is totally up to you. We are here to help you decide what strategies are best for you. We normally recommend mediating all unsecured debt to help you get on the path to financial freedom quicker.
What’s so bad about filing bankruptcy?
Bankruptcy may seem quick and simple, however many people file for bankruptcy each year failing to realize they may be forced to deal with the harsh effects that will plague them for the rest of their lives. One must first be aware that bankruptcy does not always go away after 7-10 years, as some bankruptcy attorneys may claim. The reality is nearly all credit applications ask if you have ever filed bankruptcy, and to answer falsely is considered a federal offense. Also, costly court and lawyer fees accompany the process of filing for bankruptcy. And, with changes in Bankruptcy laws, many consumers will not be able to eliminate their debt simply by filing for Chapter 7.
Consumers may now be required to file Chapter 13, which requires you to pay back a portion of your debt under the supervision of the court. This process may last for years. Many clients believe bankruptcy should be considered one of the last remaining options in solving financial problems but you should always consult with an attorney regarding such matters.
What kind of team do I have working for me at CreditArbitrators?
We build relationships with our clients based on trust and support. We know the difficulties and stress that financial problems entail. We have a team of knowledgeable Credit Specialists, Debt Analysts, Advisors and Negotiators who have experience dealing with personal debt and will provide you with facts that will help you make informed decisions. With years of combined experience in reducing and eliminating debt for our clients, our experienced team will support you and help you greatly reduce your debt.
How does debt mediation affect my credit?
That depends on what your credit looks like when you enrolled in our debt mediation program. But, in general, if you do not make payments and pay your creditors according to the terms of your agreement, your credit will suffer. That is one of the trade-offs you will have to make if you are serious about reducing your debt.
How does the IRS treat debt that is forgiven?
Financial institutions are generally required to provide a Form 1099-C in the event that a forgiven debt amount exceeds $600.00. Please understand that if you receive a Form 1099-C showing income in the form of canceled debt, this does not necessarily mean that you owe taxes on the forgiven portion of the debt. In many cases, clients can legally and ethically exclude forgiven debt from their income through the "insolvency exclusion" provided by the IRS code. This exclusion means that your liabilities exceed the fair market value of your assets, or in other words, you "owe" more than you "own". We recommend that you consult your tax advisor regarding your particular circumstance. They will also be able to assist you in filling out appropriate forms. We do not offer or provide tax advice.
Does CreditArbitrators make monthly payments to your Creditors?
No, you are responsible for all payments to creditors. You are responsible for any payments to creditors and for saving funds to resolve your debt.
Is it wrong for me to avoid creditor calls or use different types of call screening devices?
It is your right to accept or not accept unwanted calls. If you have told your creditor you are unable to make a payment and they continue to call, and your circumstances have not changed, it may not be fruitful to talk with them. The decision whether or not to speak with your creditors is yours.
What happens if I am unable to save funds?
This is a debt mediation program and if you are unable to accumulate funds then we will not be able to resolve your accounts. If something happens and you are unable to make a full or partial payment, call us about getting short-term relief.
Does CreditArbitrators have control of my savings?
No. CreditArbitrators does not have any control over your savings and never acts as an intermediary when it comes to your funds. The only money we ever receive from you are our service fees. When you agree to resolve an account, we will provide you with payment instructions. We have no control of your savings.
Can CreditArbitrators stop collection efforts including lawsuits brought by creditors?
No, but we do have strategies on helping you manage the collection efforts.
Do late fees and interest charges stop while I am in the program?
No, the interest and fees continue to accumulate, but CreditArbitrators will negotiate with your original balance in mind.
Does CreditArbitrators contact my creditors?
Yes, at the appropriate time and once you have accumulated funds to resolve an account, we will contact your creditors to begin mediation. We can also help you when you have certain types of escalated situations with your creditors. Our Priority Account Specialists are dedicated to working with you and the creditor to resolve escalated situations.