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Can my creditors take legal action against me while I am enrolled in a debt management plan?

Your creditors have the right to take you to court even if you are enrolled in a debt management plan (DMP). Contact us immediately if this happens. If you do have to go to court, your payment history on the DMP can serve as evidence of your good faith effort to repay your debt.

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What happens if the creditor declines my Debt Management Plan proposal?

If you are enrolled in a Debt Management Plan, your creditors will receive proposals within seven to ten days of your program enrollment. It will often take four to seven weeks for them to process the proposal. It is important to understand that even once we receive a positive response to a proposal, it does not mean Plan benefits for that creditor begin right away. Most creditors require three consecutive payments through the Plan before they will offer benefits. Often your creditors may notify us only when the proposal is declined. In this event, we will research the cause and work with you and your creditor to make the necessary changes to have the proposal accepted. Once you have made three consecutive payments through the Plan, it is very important that you check your creditors' statements to verify that they have started applying benefits.

If you are enrolled in the Settlement Plan, remember that creditors are not sent proposals. Instead, settlements are negotiated with creditors once your protected escrow account has enough funds to support a settlement.

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How long does it take for the creditors to accept the Debt Management Plan proposal?

If you are enrolled in a Debt Management Plan, your creditors will receive proposals within seven to ten days of your program enrollment. It will often take four to seven weeks for them to process the proposal. Most creditors require three consecutive payments through the debt management program before they will offer benefits. Often your creditors may notify us only when the proposal is declined. In this event, we will research the cause and work with you and your creditor to make the necessary changes to have the proposal accepted. Please check your creditors' statements to see if they have started applying benefits.

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How will a Debt Management Plan help me?

A Debt Management Plan (DMP) is a mutual agreement between you and a debt relief organization. Simply put, you agree to repay your unsecured debts in full over time, without taking on any more debt. In return, most creditors will agree to significantly reduce your interest charges eliminate future late and over-the-limit fees. This Plan is dramatically different from a Settlement Plan.

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How will a debt settlement plan help me?

A Settlement Plan is an alternative to bankruptcy for those who want to pay back at least a portion of their debt, but cannot afford to fully repay their debt on their own, or through the Debt Management Plan. On a Settlement Plan, your monthly payments are held in a protected escrow account while negotiations take place with your creditors for a less-than-full repayment.

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