Frequently Asked Questions Debt Settlement

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Debt Negotiation FAQs

Q: Are your debt negotiation services guaranteed?

YES! Our services are 100% guaranteed or you will either get your money back or not be charged a contingency fee. We are confident that we will be able to help you achieve your financial goals. We offer a variety of different processes no matter what your financial situation may be, and we will make sure to work our hardest to find the process that is right for you. Each process that we offer has its own specific conditions and all of the conditions will be stated in writing for you to review as part of your agreement. All of our services are guaranteed to work as long as you do your part, or you will get your money back!

Q: Can you help me if I am being sued by one of my creditors?

Absolutely! Our attorneys have successfully defended many lawsuits on behalf of our clients against their creditors. We must advise, however, that it is not always the best strategy to defend against creditor lawsuits, and sometimes there are other actions that we will recommend. No matter what your predicament may be, our attorneys are well qualified to evaluate every different case and advise you on what your best plan of attack should be.

Q: Can you help save me from losing my home?

Absolutely! We know that the thought of losing your home can be extremely stressful and frightening to even think about, which is why we offer a variety of different services that can assist you when facing a potential foreclosure on your home:

Using one of the strategies listed above, we assure you that we can help to improve your financial situation and hopefully avoid foreclosure on your home. We have helped many just like you, so contact us now, and don’t wait until it’s too late.

Q: Can you stop late fees and interest from accruing on my accounts?

The answer is; it depends. Usually, unless you file for bankruptcy, we cannot stop a creditor from adding interest or late fees to your account. However, under some of our settlement techniques, we will map out a manageable payment plan that will include your late fees and interest. With one of our services, you will typically pay back between 40-60% of your actual debt which will include the fees and interest that will accrue on your account in the future. Other processes will work with your creditors to bring your accounts back to current status with certain conditions. What ever your situation is, we will be here to guide you and help you get out of it.

Q: What’s the difference between Debt Consolidation and Debt Settlement?

Debt consolidation can be seen in many different forms, but generally speaking, any time you borrow money from one lender to pay off multiple other lenders, that is a form of debt consolidation. With debt consolidation, you are combining all of your smaller debts into one larger debt, and attempting to get a better interest rate in the process. A prime candidate for debt consolidation is someone who has good credit, has been consistently paying their bills on time and will be able to consistently pay bills on time going forward.

Debt settlement is a process that can help you if you can no longer afford your monthly minimum payments and do not want to file for bankruptcy. Debt settlements can help you pay off your overwhelming debt, especially if most of your debt is unsecured. During the settlement process we will negotiate the repayment of your unsecured debts for significantly less than the full amount that you owe. By using the debt settlement process, your actual balances are negotiated to lower amounts, and not just your interest rates, like with most other options. Typically, debt settlements can lower the amount of your debt to a fraction of what you owe.

A debt consolidation loan may lower your average interest rate, but will not reduce the principle amount that you owe. With a lower interest rate, your debt should be paid off quicker, but you will still pay interest on top of the principle that you owe. When you settle your debt, you will lower your actual account balances, not just your interest rates, therefore, making it much faster for you to pay off your debts.

If you have bad credit or too much debt you may not qualify for a debt consolidation loan. With a debt settlement loan, there are no credit checks, and the requirements are much less stringent since the process does not involve lending any money.

A debt consolidation loan will not have a negative effect on your credit. A debt settlement will have a negative effect on your credit report.

Debt consolidation does not get rid of your debt, but rather, it transfers your debt from one creditor to another. This does not solve your problem. You cannot borrow your way out of debt. The debt settlement process will help you pay off or settle your debt in approximately 3 years or less.

Q: Do you keep my information confidential?

Yes, all of your information is kept 100% confidential. We only disclose information to those persons that you have authorized us to do so. Any creditor that you wish for us to negotiate with will be contacted and advised that you have retained us to represent you. Any information given to us is held in strict confidence at all times and will only be shared with your creditors, with your permission, and when it is necessary to perform our services. We will work hard to earn your trust, and it is important to note that we are held to the highest possible standards by multiple trade associations and the Bar Association. For further information in regards to our privacy policy, please click here.

Q: How can someone apply for help?

There are two ways that you can apply for help with S.J. Packman & Associates. You can either fill out the request form and you will be contacted shortly, or call us toll free at (888 ) 314-1722 and you will either be connected with a debt consultant immediately or asked to leave a message, and the first available counselor will call you back as soon as possible.

After speaking with a counselor, we will do an analysis of your financial situation and discuss all of your available options. We will help you determine which processes you qualify for and will help you make the best decision for your financial future. There is never any obligation and everything we discuss is kept strictly confidential. After your free consultation, if you choose to move forward with S.J. Packman & Associates, we will then send you a comprehensive package for your review.

Q: How do I know if your company is legitimate?

S.J. Packman & Associates is a law firm, and as such, we follow all ethical rules that govern the legal profession. It is illegal for us, as your attorneys, to withhold anything from you. If we do anything unethical, we could face disbarment from the State Bar. If you would like to confirm that we are a law firm in good standing or would like to look into any of the partners of the firm, please feel free to check with the New York State Bar Association by clicking here.

Our employees are certified by the International Association of Professional Debt Arbitrators (IAPDA). You can check our company out by clicking here and any individual debt counselor that you might have spoken with can be looked up here.

We are constantly seeking new ways to improve as we move forward. We are very proud of our law firm and would never do anything to jeopardize the reputation that has taken us years to build.

Q: What are the fees for your services?

Each process we offer has its own unique fee structure. All of our fees are affordable and no matter which service is right for you we offer several different payment options. It is our pledge to work with you to come up with a payment that makes the most sense for your budget.

Some of our fees are charged as contingency fees at the end of your process to help ensure that you complete the process that you have started. Depending on the service that is right for you, we will come up with an estimated payback figure on the debt(s) that you have outstanding. All of our fees will be included into your estimated total payback figure, which is inclusive of your monthly payments.

Our fees will be disclosed to you upfront and will be given to you several times. Your fee will first be given to you verbally by your representative, then your fee will be put in writing on your retainer agreement, and then you will be given your fee one more time before we complete your enrollment in our process by an automated third party compliance phone call. We are a full disclosure company and we do not charge any hidden fees, we will tell you everything you need to know about our fees upfront before we even start representing you.

Q: What is the difference between unsecured and secured debt?

The difference between a secured and an unsecured debt is that an unsecured debt is debt that is not backed by a tangible asset and a secured debt is a debt where the debtor has given up the right to some type of asset/collateral in order to receive a loan.

In the case of an unsecured debt, in order to obtain a loan, the borrower does not have to put up any collateral. The most common types of unsecured debts are credit cards, department store cards, gas cards, medical bills, utility bills, and personal or signature loans. Since there is no asset backing the loan, should you fail to make timely payments on an unsecured debt, there is nothing for the creditor to take back.

In the case of a secured debt, when a borrower fails to make timely payments, the creditor is entitled to repossess the asset that is securing the loan and sell it. If a creditor sells the asset they have reposed, but the entire debt has still not been paid, the borrower can still be liable for the unpaid balance. Therefore, when the property that is securing the debt has already been repossessed and sold by the creditor, it is possible for a secured debt to become an unsecured debt. The two most common types of secured debts are home loans and car loans.

We can help you whether you are having trouble with a secured or an unsecured debt. Our counselors will help you decide what process will be right for you based on the type of debt that you have and your specific financial situation.

Q: What type of debt can you handle? What services can you help me with?

S.J. Packman & Associates offers a variety of different services in order to ensure that no matter what your individual needs or financial hardships are that we will be able to provide the right service to you. We have processes to help you no matter what type of debt you are in, whether it be secured or unsecured debt. We are an industry leader in all forms of legal debt negotiation, and along with our affiliates we can help you with any of the following types of debt:

No matter how difficult your financial predicament is, we will most likely be able to help you. Our counselors are here to help you decide what process will be right for you based on the type of debt that you are in and your specific financial situation.

Q: What's the difference between Debt Settlement and Debt Management a.k.a. Consumer Credit Counseling (CCC)?

The goal of debt settlement is to reduce the amount of total debt itself, while the goal of CCC is to lower interest rates on your relevant accounts.

Debt Settlement provides much more flexibility than CCC because the monthly payment contributions are flexible and left up to the client. In the case of CCC, the terms and payments are typically higher and extremely rigid. If a client is too far behind on payments to one of their creditors, that account may be rejected by CCC, but can still be enrolled into the Debt Settlement process.

With debt settlement, you can be out of debt in a term of only 1-3 years, and it can end up costing you much less money than CCC. With CCC it can take anywhere from 4-9 years to be out of debt because you have to pay the full amount of debt that you owe plus interest.

Debt Settlement Specialists do not receive compensation from the creditors that they deal with. Consumer Credit Counselors make most of their money from your creditors as a percentage (typically 7-15%) of what their clients pay each month into the program. A consumer credit counselor’s incentive is to keep you paying so they can keep collecting fees. Our specialists actually get bonuses based on how much money they are able to save for our clients. Our only interest is helping you, not your creditors.

Q: Why should I choose your company?

S.J. Packman & Associates is an industry-leading law firm that is fully dedicated to your success. Our attorneys are experts in the laws that govern the credit industry and govern your creditors. We have teams of IAPDA Certified Debt Arbitrators and Certified Debt Specialists that have the necessary knowledge, understanding, and experience in dealing with ever facet of the of the debt and credit industry. We are not affiliated with any bank, creditor, or other lending institution and are here to work exclusively for you.

Since S.J. Packman & Associates is an actual law firm, unlike many others in this industry, we have a fiduciary and legal responsibility to do the prudent thing for our clients. We offer many different services that will educate you and help you reach your financial goals. If you find yourself in a financial struggle and are looking for help and a way out, put the power of S.J. Packman & Associates on your side.

Q: Will creditors continue to contact me after I hire you?

Fortunately, your creditors must adhere to the laws set forth by the Fair Debt Collection Practices Act (FDCPA) which states that once third-party debt collectors are notified that our law firm represents you, they are expressly prohibited from making any further contact with you. After you hire us, all third party debt collectors are only permitted to speak with us. This law is one of the many advantages of hiring S.J. Packman & Associates because since this law only applies to attorneys, many non-attorney based companies in this industry do not have this service to pass along to their clients.

Once you hire S.J. Packman & Associates, you will receive a welcome kit relevant to the service that you retain us for that will teach you your rights when dealing with your collectors. We will teach you how to deal with and document collection calls if they persist. Collectors that do not adhere to the FDCPA law can be subject to legal action. In the event that any collectors violate this law and continue contacting you, our legal team is here to protect your legal rights. If collectors continue to contact you after they have been informed that we are representing you, we are able to seek compensation on your behalf from the debt collectors. At S.J. Packman & Associates, we will arm you with the knowledge and tools to fight back against these practices. For more information on collector violations and what you can do about them, click here.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.

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