Frequently Asked Questions

  1. I have made the first payment; what happens now?

    Once you make your first payment, we will send your signed Power of Attorney (POA) to your creditors and start the negotiation process for debt settlement.

  2. My creditors keep calling me. What do I do?

    A. Inform them that you have enrolled in the OVLG debt settlement program. Request them to contact us henceforth.

  3. How long would it take for me to be debt free?

    A. It depends on the amount you owe, how much you can save in the trust account, number of creditors you have and their willingness to negotiate.

  4. Does debt settlement hurt my credit?

    A. Yes since you’re not paying the full amount. But you can improve your credit score by building a positive payment history.

  5. How much time it will take to recover my credit score?

    A. It actually depends upon you - how soon you build a long and positive payment history. There is no fixed time period.

  6. How many months we need to pay to become debt free?

    We cannot give you an exact time frame, as It mainly depends on the settlement percentage at which your debts are settled and the amount you save in your trust account every month.

    For example, if you enroll a total debt of $10,000 that is settled at 50% of the debt amount i.e. $5000. You can pay this $5000 in lump sum if you have enough funds or you can pay it in monthly installment payments that will take more time to pay it off. Thus, you can become debt free faster if the settlement percentage is low and you can save more in your trust account every month. If the settlement percentage is high, you need more money to pay off a debt, so you need to save more every month that is not always possible for everyone with financial hardship.

    Remember, you have complete control over your monthly savings, but not on the settlement percentage that again depends on many factors. As per the industry trends and our experience, a debt can be settled at 40% -60% of the debt amount, but we always negotiate for the lowest settlement percentage possible to save more for our clients.

  7. When will I get my first settlement?

    A. Generally a debt is eligible for settlement if it's past due for 90 days or more. Hence, if your debts are delinquent enough and you have enough funds to pay, we can start settling them.

  8. Should I contact with my creditors to inform I am working with a debt settlement company?

    A. Yes you can, but it is not needed. We will send your signed Power of Attorney (POA) to your creditors to notify that you have retained our law firm to settle your debts.

  9. One of creditors informed they do not work with third parties. What should I do?

    A. It is very unlikely that a creditor will refuse to work with third parties. If it happens that means they wish to work with you directly and they will offer you different options to pay off your debts.

    We advise you to inform us if any of your creditors refuse to work with third parties. We will contact with the creditor and try to negotiate. If the creditor is not at all ready to work with us, then we will remove that creditor account from your list of creditors. You can then directly deal with them and discuss your payment options.

  10. Can I get sued while enrolled in a debt settlement program?

    A. Creditors can sue you even after joining the debt settlement program. But many creditors decide to not sue you since lawsuits involve legal expenses. They have already incurred losses since you have stopped making payments. They don’t want to spend more dollars on the same account.

  11. Can debt settlement stop wage garnishment?

    A. Debt settlement may help you avoid wage garnishment. When you enroll in a settlement program and settle your debts, creditors become happy and they drop their idea to file a lawsuit and garnish your wage.

    Even if a judgment is issued, we can still settle debt for less than the court-approved amount. Most creditors are happy to negotiate rather than getting an uncollectible judgment.

  12. Do I need to pay tax on the saved amount?

    A. You have to pay tax if your total saved amount is more than $600. The IRS regards it as taxable income.

  13. What is 1099c?

    A. You receive this form when creditors cancel your debts. This form implies you received money when the debt originated, but you didn’t pay back. Since, you didn’t pay the full amount, so your original debt is considered as income. You have to report this amount in your income tax returns.



BBB-A--Rating