The Debt Counseling Process

The debt counseling application process can take up to 60 working days to complete. Although this is a long process, the consumer will be protected against legal action from creditors within 5 working days during the application process.

Man in Black Suit Writing on White Paper

The debt counselor will negotiate with the creditors on the consumer’s behalf during both the application phase and until all debt have been met.

When applying for debt review the consumer completes and signs a debt counseling application form. This form is accompanied by supporting documents such as latest payslip, accounts with full outstanding amounts from creditors and the complete contact details of these creditors 債務重組收費. Within 5 working days of submitting a complete debt counseling application form, all creditors are notified by the debt counselor that you as the consumer have applied for the debt review process.

The debt counseling application is now in progress and no legal action can be taken by your creditors. Creditors will have to confirm that these outstanding amounts as given by the consumer are correct. If no conformation is given by them the debt counselor may assume that the amounts given by the consumer are correct. The debt counselor will now use all these outstanding amounts and your monthly income to calculate if you are indeed over-indebted.

A debt restructuring proposal will be sent to the creditors by the debt counselor, based on the amount you have available each month for paying your debt. The general idea is to lower your monthly repayments, thereby allowing you to also save money for an emergency fund. The proposal is generally sent to the creditors after 25 days from the date of application. Creditors have about 15 days to respond and accept the proposal. If accepted the proposal is finalized and sent to the Payment Distribution Agency (PDA) for receiving and distributing your monthly payments to credit providers.

It is easy to get debt help but you need to remember a few important factors before you take any step. Today we have various debt relief services available in the markets, but not all of them are authentic and trustworthy. Every other day a new complaint is reported against the few settlement agencies which are found to be scams. So, one really needs to be careful while trusting any consultancy agency to help them.

If you are clear with what you want from the settlement process, it will not be that difficult for you to get the best debt help for yourself. There are numerous companies available in the markets which offer effective and efficient ways to get rid of your debt problems. These companies also help in negotiating with the creditors to get the best and most convenient debt paying schedules. Credit counseling companies also provide different debt products, to help you to get rid of debt quickly and easily.

There are various ways to get debt help such as a consolidation loan, credit counseling, forbearance and debt restructuring. Debt consolidation is the process that combines all your unsecured debts into a single monthly payment. Over the past years debt consolidation has become a big business in the United States and Canada. The aim of these companies is to consolidate the debt into one easy payment. However to pay off their debt they require a new loan but the payment is less then the payment you are paying for the previous one. You can take out a debt consolidation on the basis of any of your owned property like using the home equity loan or may be a debt consolidation loan from a bank.

There are other ways as well to help you in dealing with any debt related problem. For example you can handle the situation by setting up a budget for yourself and a debt payment plan to pay off your debts. You can also try to negotiate with your creditors to lower the interest rates and payments for you. Making these small efforts you can help yourself with getting rid of debt.

Leave a Reply

Your email address will not be published. Required fields are marked *