FAQs
What are the qualifying criteria for SCOA Debt Settlement program and am I a good candidate for Debt Settlement?

If you are a US resident with a total minimum debt of $7,500. The ideal candidate for debt settlement is someone, who is experiencing financial hardship and is struggling to pay credit card bills. He or she is barely making the minimum monthly payments. The ideal candidate is looking to reduce their monthly payments and pay off their debts in a shorter time frame and get debt free.

What are the eligible debts for SCOA Debt Settlement program?
We only negotiate unsecured debts. These include:-
  • All major Credit Cards (Visa, MasterCard, American Express)
  • Department Store cards
  • Medical Bills
  • Personal Loans (only Unsecured)
  • Auto loans (Repo accounts only)
  • Utility bills (in collections)
  • Gas Cards

 

How do my creditors get paid?

Once you sign up for our program we set up a Special Purpose Savings Account in your name. You will be controlling this account and money will be accumulated, through the monthly payments calculated based on your debt amount and the tenure of the program. In the meanwhile, SCOA’s Creditor Relations team will be aggressively negotiating with your creditors and once an agreement is reached and adequate funds are available, we will seek your approval before paying out the creditors. We will be negotiating with the creditors individually for the best settlements possible.

*SCOA is not a credit repair organization and cannot help you clean up your credit.

When will I complete the debt settlement program?

The program is designed in a manner that you are at command. Therefore, it completely depends on how much money you set aside for the program for eliminating the debt. The more money you set aside for the program each month, the faster you will complete program and get debt free. You discuss these options with our experienced staff and learn how you can complete your debt settlement program in the shortest possible time. Please note that the proposed percentages of settlement for creditors are based on estimates and the final outcome is dependent on creditor’s discretion and hence results may vary.

 

Why can’t I negotiate on my own with my creditors?

Yes, it is possible. Like everything else, you can resolve your own debts. This can be compared to you trying to fix your own computer, or your car or treating your own illness. Would you rather not let an expert help you? When dealing with creditors to resolve debts, one must be aggressive and patient at the same time and most importantly one needs the experience to deal with creditors. At SCOA, our Creditor Relations team has settled tens of thousands of accounts with hundreds of millions of dollars in debt. When it comes to debt settlement, the difference between doing it yourself and getting it done by a professional can cost of you thousands of dollars.

Will the program affect my credit?

Being in a Debt Settlement program, there is a possibility of your credit being affected negatively. Once the debt is settled, it reflects in your credit report as “Settled” or Settled for lesser amount” or “Paid as agreed” instead of “Paid in full”. Once your debts are paid off, you will be in a better position to improve your credit score.

Can my creditors take me to the court?

One of the negatives of enrolling into a settlement program is the possibility of your creditor taking the legal route to collect the amount due on the account. However, the accounts can be settled, before or during the accounts being litigated if there are enough funds available and if the creditor is willing to settle.

Can the Debt Settlement program prevent legal action?

Being a Debt Settlement Company, we negotiate with the creditors to settle your credit cards at a lower balance. We cannot prevent them from taking a legal option to recover their debts. But, we can settle the accounts even if the accounts are litigated.

When will SCOA start settling my accounts?

Once you are enrolled into the program, SCOA will inform your creditors of your enrollment into the Debt Settlement program after which we begin negotiating on your accounts. Settlement is a result of repeated negotiations where both the parties may agree or disagree till the time a certain favorable agreement is reached. The settlement is also dependent on the availability of funds in the escrow account.

Is Bankruptcy an option I should explore?

Every situation is unique and it needs to be handled differently hence it is advisable that you seek legal opinion for questions on Bankruptcy. Many may suggest Bankruptcy to be a quick and easy way of getting out of debt, however on the flip side you may have a bad credit which can last for 10 years. Well, it doesn’t end at 10 years because even if after 10 years, when you look for a loan or to buy a house, you must disclose about your bankruptcy. There is a possibility that banks may charge you higher interests or even reject your application based on your past record.

What about tax implications on successful settlement?

The IRS considers a forgiven debt as taxable income, therefore at the end of the year, taxes must be paid on settlement. It is advisable to contact a tax advisor who can advise you on how to file your taxes.

What is the cost of the SCOA debt settlement program?

The monthly payment amount depends on the amount of debt you are bringing into the program and the program chosen. You can call our representative on SCOA, who will advise you of our fee structure and the monthly payment plan.

 

What if I miss my monthly payments on the SCOA debt settlement program?

In a Debt Settlement program, it is understood that the reason you are in a program is due to your hardship hence provisions are given in the program to get you through ‘your rainy days’! The journey may take a little bit longer if you skip payments but you always have an option to make up for it, whenever you can afford to pay more than your monthly payments. You have the flexibility of paying more if your situation permits which speeds up the process of getting you debt free faster. For more information call us now and embark on the road to financial freedom!

Should I enroll all my credit cards?

It is advisable to keep at least one credit card for emergencies.

Call us now to find out more about our debt settlement program.