The new bankruptcy laws have come into effect from today, i.e..17th Oct, 2005. As the credit counseling has become important under the new laws, some research will help in choosing the right company for you. Ask the following questions to get an idea about them.
You should know the services that the credit counselors offer
Know the plans that will be set in the credit counseling program.
The fees should be explained clearly and before the beginning of the program.
What actions can be taken by the credit counseling company if you fail to pay the fees?
Know your counselor's qualifications and the training undergone.
Ensure safety to your personal information. They should not be sold to the third parties.
Ask the consultant if the company pays any commission to them after they work with a consumer.
What are the charges of the credit counseling and budgeting programs offered before filing bankruptcy?
What services will be offered in this program? Get an idea about the certificate that will be provided to you before you approach the court for filing bankruptcy. Also know the cost of the certificate (if any)
By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.