Frequently Asked Questions
Q: Who is qualified for our program?
Q: Who is NOT qualified for our program?
Q: How do I apply?
Q: How will you settle my debts?
Q: Should I consider bankruptcy a better option for me?
Q: Does Debt Settlement have a negative impact on my credit?
Q: Can I still use my credit cards?
Q: Will interest and fees continue to accumulate?
Q: What will I pay for your services?
Q: Do you guarantee that you will settle all of my debts?
Q: Can I be sued?
Q: Can you stop my creditors from calling?
Q: Do you repair my credit?
Q: Can creditors garnish my wages?
Q: What are the tax consequences?
Q: Can't I negotiate my debts with my creditors on my own?
Q: Who is qualified for our program?
Debt settlement programs where designed to help people facing financial HARDSHIP. This means people who are late paying their debts, or no longer have the ability to pay the full monthly amount due and are facing a possible bankruptcy.
Q: Who is NOT qualified for our program?
This program is not designed for people who have reasonable means to pay off their debts. If you have the ability to pay your debts in the normal fashion, then you should honor your debts and do so. This program is NOT for people who have high credit ratings just looking to beat the system and their creditors.
Q: How do I apply?
Complete the form online or give us a call. A debt specialist will review your specific information and determine whether the program is right for you. After a debt consultant has reviewed your financial situation and hardship they will determine if you are a qualified candidate for the program.
Q: How will you settle my debts?
You will be asked to put aside and save a set amount of funds each month in a special savings account. This amount will be determined during your initial consultation. Each person's situation is different and the negotiation process will begin at different times depending on the amount of your debt and your ability to save funds. Once the creditor agrees to a settlement amount, we will present this offer to you. If you approve of the settlement, we will get the “offer' in writing and notify you, so that the release of funds can be authorized.
Q: Should I consider bankruptcy a better option for me?
Anyone considering our program should also contact a bankruptcy attorney to determine if their situation warrants a bankruptcy filing. Using the Debt Settlement process does not guarantee that you will not have to file for bankruptcy in the future, however it is a better action plan over the short term if you have the ability to save funds each month over the duration of the program term.
Q: Does Debt Settlement have a negative impact on my credit?
Yes. If you are considering your options based on some type of financial hardship it’s more than likely your credit score has suffered already. Entering this program will have a negative effect on your credit profile. How much it will decline depends on your original circumstances. Most of the accounts you place into negotiation are likely to "charge off", which again will reflect negatively on your credit. When a settlement is complete the creditor should notify the credit bureaus that the account has been settled.
Q: Can I still use my credit cards?
No. All credit cards entered into the program will no longer be active and you will not have credit privileges. Any cards you decide NOT to put into the program should not be used. This program is for you to get out of debt.
Q: Will interest and fees continue to accumulate?
Yes, Interest and Fees will continue to accumulate, however they will be included in your settlement.
Q: What will I pay for your services?
Unlike most debt settlement companies Emerge America applies settlement fees only when a bona fide settlement is reached. You will pay a fee which is calculated based on the total amount of debt enrolled. All costs and fees are always fully disclosed, and you are required to sign an agreement, confirming your commitment to our program.
Q: Do you guarantee that you will settle all of my debts?
No. There is no guarantee that all your debt will be settled, and don’t be fooled by any debt settlement company that makes this claim. You may withdraw from the debt relief service at any time without penalty, and, if you do withdraw, you will receive all funds in your special purpose account, other than those funds earned by Emerge America for any settlements that we have successfully made on your behalf.
Q: Can I be sued?
Yes. Your creditors certainly have the right to attempt to recover their money, however, we will continue to work with you in the settlement process. Being sued doesn’t mean that we can’t continue to settle. A legal suit is a costly and time consuming process and frequently is not the route that a creditor wants to take.
Q: Can you stop my creditors from calling?
No. Your creditors have every right to try and contact you in order to collect a debt. If your account is in collections; creditors and the agencies they employ must adhere to the FDCPA Guidelines. Please check our “Resource” page on this site for useful links regarding the Fair Debt Collection Practices Act. This defines when and how a creditor and or collector, may contact you.
Q: Do you repair my credit?
No. Companies cannot remove legitimate negative items from your credit report. Negative items will remain on your credit report according to the conditions imposed by the credit reporting agencies. When a delinquent account is settled, it is reflected on your credit report.
Q: Can creditors garnish my wages?
Yes. The creditor first has to sue you, successfully obtain a judgment, and then file for a garnishment action. This is a costly and time consuming process, but again within the creditor’s rights.
Q: What are the tax consequences?
Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return. However, the IRS permits you to write off any "income" from canceled debts up to the amount by which you were "insolvent" at the time. You need to consult your own tax advisor for advice specific to your situation.
Q: Can't I negotiate my debts with my creditors on my own?
Yes. You can negotiate your debts with your creditors on your own, in fact many folks do. The process and art of negotiation is not to be taken lightly. Those who don’t possess these skills, could be doing themselves a disservice. It’s frequently a good idea to hire someone who is a professional in the area of debt settlement. When you need your car repaired, most people will go to a mechanic. When you need your taxes done, most people, go to an accountant. It’s the same logic applied in most cases requiring a professional service.
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