Frequently Asked Questions
Debt Relief Program
- Will my credit be affected?
- The Greaves Law Group will not report to the credit bureaus that you have entered into a Debt Management Plan (DMP). However, you should be aware that some creditors may report that your account is in DMP to the credit bureaus, while others may not. What the creditors will report is that you are honoring your debt rather than filing for bankruptcy.
- Will my creditors stop call me?
- Yes. In most cases your creditors will stop contacting you once you have entered into a debt repayment plan. You should note that a debt settlement company cannot stop creditors from contacting debtors. However, a law firm can send out a statement of attorney retention to force the collectors by law to deal only with the law firm, and not the client in an attempt to collect the debt.
- Will all my creditors be included in my Debt Management Plan?
- Yes. You should include all your unsecure debt in the debt management plan.
- Can a creditor reject the plan?
- Yes. However, if a creditor is not willing to accept your plan for repayment, The Greave Law Group will contact you to see if you can adjust your budget to meet the creditor’s requirements.
- Will my creditors stop adding finance charges the accounts that are in the Debt Management Plan?
- Many creditors will agree to stop or reduce the finance charges but not all creditors will. Also, some creditors may stop assessing late fees.
- What if I cannot make my monthly payments after entering the Debt Management Program?
- If you are unable to meet the monthly commitment after entering the program, you will want to contact our office and discuss your situation to determine whether bankruptcy may be an option for you. With Chapter 7 Bankruptcy you can seek to discharge (forever make unenforceable against you personally) credit card debts, medical debts, many kinds of contract debts, and tort debts for negligence.
- What is Chapter 7 Bankruptcy?
- Chapter 7 is the simplest, fastest and least expensive for the debtor kind (Chapter) of bankruptcy, and is the only Chapter of bankruptcy where debtors do NOT have to have the Bankruptcy Judge confirm a plan of repayment, and then spend 3 or more years making monthly payments. Chapter 7 is called the “liquidation chapter,” because if you file Chapter 7 bankruptcy, the Chapter 7 Trustee will sell (“liquidate”) all of your non-exempt real and personal property, to try to get money to pay to the debtor’s creditors. However, the Chapter 7 Trustee does not always “liquidate” (sell) the debtor’s property.
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