Several credit card issuers will use terms like “Attorney Placement Pending”, or reference the fact that they may soon decide to place your account with a law firm for collection. In several instances the word “may” should read as “will”. In other instances, placing your account for legal collection is...
What does it mean when a collection law firm has contacted me and how can Resolve help with this?
Not all unpaid debts will wind up in court. Some lenders and debt buyers use collection law firms a ton, while others use them sparingly, and others still, not at all. Your Resolve profile is a great place to get an idea of what you can expect to happen with...
What can I expect when my debts have been sent to a collection agency and how can Resolve help?
Hearing from a collection agency will typically mean you have fallen behind enough on a bill for your creditor or service provider (utility bill, medical debt) to have given up trying to get you to pay.When it comes to credit card bills, you can start hearing from collection agencies after...
What happens if I miss payments in the DMP?
The DMP requires somewhat consistent monthly payments. A few missed payments could result in the plan ending and your debt going back to the original interest rates. It's in your best interest to make sure you can cover these monthly payments for an extended period of time.
How is my estimated completion date determined for a DMP?
Debt management plans cannot exceed 60 months of repayments, which we have calculated for you. You can finish a DMP faster by paying extra when you have more to give, but the plan cannot be extended beyond 5 years (60 months).
When does the DMP start?
You will get together with the nonprofit credit counseling agency who will help you determine the right start date for your DMP.
Why aren’t all of my debts included in the DMP?
Here are some possible reasons your debts have been excluded from the plan: The creditor you’ve listed may not be in our system. If you do not see it listed, please check the spelling and/or contact support@helloresolve.com to let us know what type of debt you are trying to enter so we...
How does saving in interest help me?
On average, your interests rates for both credit cards and bank loans will be reduced down to 6% with a DMP, which means lower monthly payments for you. DMPs have a payoff time of 60 months or less. This can shave 15 or more years off of a person's credit...
Why is there a monthly fee for a DMP?
The nonprofit credit counseling agency that will implement your DMP charges a nominal monthly fee to administer your plan, remit payments to creditors, etc.
Why do I see so many payments for a DMP?
Debt management plans cannot exceed 60 months of repayments. You can finish a DMP faster by paying extra when you have more to give, but the plan cannot be extended beyond 5 years (60 months).
Why do I see a range in payment amounts for a DMP?
Debt management plans are estimated between 1.7 and 2.5 percent of your enrolled debt (the accounts accepted into the plan). If you enroll $30k in a DMP, your new monthly payment will be between $510 and $750. You need to contact an accredited DMP provider in your state to get...
Why do I see a range in interest savings for a DMP?
Your DMP will have a set monthly payment, and cannot last longer than 5 years. This means you are out of debt far faster than if you were to just make minimum payments on the balances you owe as of today. The interest rate savings range is there to show you...
Does Resolve offer Credit Counseling services and/or DMPs?
Unfortunately, we do not offer either of these services at this time, as we are not a Credit Counseling Agency. However, once you complete your profile, our system will be able to determine if Credit Counseling may be a good option for you and will point you in the right...
How does Resolve help with debt management?
Resolve can help you with debt management by referring you to a service provider in the Resolve Network, who offers a free consultation and will provide a payment quote. Then you can evaluate if it's a good option for you and your financial circumstances.
Is debt management the same as debt consolidation?
Nope. Debt management usually involves working with a credit counseling agency that seeks to lower interest rates on your existing loans and credit card debts. Debt consolidation, on the other hand, usually means taking out a large loan from a creditor to cover the balance of all your existing loans...
When will I be able to get a credit card, loan, car and/or mortgage after a DMP?
You can apply for car loans, student loans, and mortgages while in a DMP, and certainly after. It is often best to wait until you complete your DMP before applying for new credit cards and unsecured loans.
What will show on my credit report after a DMP?
Positive, closed accounts.
What will show on my credit report during a DMP?
Nothing negative should appear on your credit report during this time. Your report should show that you're making your payments on time. Some of the accounts may show you are enrolled in a DMP.
How will my score change during and after a DMP?
Your score shouldn't be impacted during or after a DMP. Your utilization should come down which can help your credit score. However, because your accounts in the plan typically get closed, you will lose some "account type" diversity, which can be replaced later.
How do DMPs impact my credit score in the beginning?
There should be no meaningful impact if you have maintained on time minimum payments. If you already have late payments prior to the DMP, the credit damage has already happened.
What are the risks of a DMP?
A DMP requires somewhat consistent monthly payments. If you miss a few payments, your plan could end and your debts would go back to the original interest rates.Accounts enrolled in the plan will be closed. This means that when the DMP is over, while the debt is paid and your...
What are the benefits of a DMP?
On average, your interests rates for both credit cards and bank loans will be reduced down to 6%, which means lower monthly payments.They may make it more affordable and have a fixed pay off time of 60 months or less.You won't have to deal with collectors.If you make your agreed-upon...
Can I do a DMP on my own?
No, a credit counseling agency will need to do this for you; however, some creditors may offer hardship plans to you directly. If you decide that a DMP is the right option for you, you’ll need to contact a licensed credit counseling agency in your state. Both the National Foundation for...
How much does a DMP cost?
These plans are highly regulated so fees vary by state. Typically, a nominal fee is built in to your monthly payment that will always be between 1.7 and 2.5 percent of your total balances enrolled. Most states cap fees between $50 and $75 and a certain percentage of people enrolled...
How long does a DMP take?
Debt management plans typically last 36 to 60 months but cannot exceed 60 months of repayments. You can finish them faster by paying extra when you have more to give, but you won't be able to extend the plan beyond five years.
How does a DMP work?
In order to begin a DMP, you will need to reach out to a Credit Counseling Agency licensed in your state. The agency will work to reduce the interest rates you are currently paying so you can bring down more of the principle. However, you will need steady income as...
What is a Debt Management Plan (or DMP)?
A Debt Management Plan (also known as a DMP) is a sponsored repayment plan where you work with a nonprofit credit counseling agency to pay back your existing debts. The plan puts all your qualified debts into a single payment, reduces interest rates and often eliminates fees. These plans typically...
If Resolve recommends Chapter 7 Bankruptcy, how soon can I file?
You can file Chapter 7 right away, which is especially useful if you are already involved with legal collections, or have been struggling under the weight of overwhelming debt for too long.
How does Resolve determine the cost for filing Chapter 7 Bankruptcy?
The average national cost for Chapter 7 is around $1,800, but this will vary slightly by location.
Why doesn’t Resolve include all of my debts when filing Chapter 7 Bankruptcy?
Here are some possible reasons your debts have been excluded: The creditor you’ve listed may not be in our system. If you do not see it listed, please check the spelling and/or contact support@helloresolve.com to let us know what type of debt you are trying to enter so we can assist you.Student...
Why does Resolve only recommend filing Chapter 7 as an option?
You certainly should look into your options with Chapter 13 Bankruptcy. It is a forced repayment plan that typically lasts 5 years. It is inflexible and hard to complete. Most of us would look to settling debts for less outside of a Chapter 13, as it can go faster, provides...
Does Resolve offer partnerships with bankruptcy attorneys?
Not currently but stay tuned! However, we offer this helpful resource for now: http://network.nacba.org/advanced-search where you can find a bankruptcy attorney near you.
How does Resolve help with Bankruptcy?
We can connect you with licensed professionals in your state that will give you a no-cost initial consult. We can also help you understand what Bankruptcy would do or mean for your financial circumstances.
When will I be able to get a credit card, loan, car and/or mortgage after Bankruptcy?
You can apply for credit cards, loans and car loans right after discharging debts in Chapter 7 bankruptcy. However, the rates may not be ideal. You can apply for a mortgage 2-3 years after discharging as well. Please keep in mind that Chapter 13 is a much longer process than...
What happens to my car in Bankruptcy?
If you are still paying on your car loan, you can reconfirm the loan in Chapter 7 and continue to drive, and eventually own your car with regular payments. You could also use the Chapter 7 process to shed your loan obligation on an underwater car loan. If you own...
How does Bankruptcy impact my home?
How much of your home equity is protected in a Chapter 7 bankruptcy is determined by the state you live in. A limited number of states protect the entire value of your home, while others protect very little. If you do meet your states homestead/equity exemptions, you would continue to...
What will show on my credit report after Bankruptcy?
A bankruptcy remark will show on your credit report for 10 years after filing Chapter 7. However, you can take steps to rebuild your credit immediately. A bankruptcy remark will show on your credit report for 7 years after filing Chapter 13. So if you think about it, since Chapter...
What will show on my credit report during Bankruptcy?
There is no "during" period when filing Chapter 7 because it's over so quickly. As for Chapter 13, you're unfortunately in credit purgatory until your payments are complete. This can take up to five years so there won't be any updates to your credit report until you're done with all...
How will my score change during and after Bankruptcy?
After a Chapter 7 discharge, you can start rebuilding credit immediately. Given that a Chapter 13 Bankruptcy can take up to five years, there likely won't be any meaningful credit rebuilding opportunities until it's complete.
How does Bankruptcy impact my credit score in the beginning?
There's no way to sugarcoat it, filing Chapter 7 or Chapter 13 Bankruptcy will cause a pretty hard hit to your credit.
What are the risks of Bankruptcy?
There is a period of time where it impacts your credit and may impact your immediate financial goals.History shows the majority of people who file Chapter 13 Bankruptcy risk not completing it, and therefore waste money and time on a solution that did not work.It's public. This doesn't impact most...
What are the benefits of Bankruptcy?
No impact to your taxes, unlike Debt Settlements where you could still owe taxes after everything's settledUsually lower cost, especially Ch. 7Ch.7 is the fastest way out of debtYou're under court protection which eliminates: judgements, liens, wage garnishments, and stops all collections, even a foreclosure.
Can I file Bankruptcy on my own?
It is possible to file Bankruptcy for both Chapter 7 and 13 without a Bankruptcy attorney but it is not recommended or usually worth it. Working with a professional is advised since this is a legal process.
How much does Bankruptcy cost?
The average national cost for Chapter 7 is around $1,800, but this will vary by your location.Chapter 13 varies, but expect to pay $3,000 or more.
How long does Bankruptcy take?
Chapter 7 is typically over in 90 days.Chapter 13 Bankruptcy plans run for 3 or 5 years. The vast majority of them are set for 5 years of repayments.
How does Bankruptcy work?
The two most common types of Bankruptcy filings are Chapter 7 and Chapter 13. In most cases you will almost always want to reach out to a Bankruptcy attorney near you and schedule a consultation; most of them do this for free so if they want to charge you, find...
What is Bankruptcy?
Depending on the type of Bankruptcy filing, it's an opportunity for a consumer to gain protection from creditors using the courts, discharge unsecured debts entirely, or enter into an organized repayment plan. There are different types of Bankruptcy filings and pros and cons within each option. Chapter 7 and Chapter 13...
What if I have more questions?
Another easy one. Email our Helpline at support@helloresolve.com We’ll try to get back to you within a few hours.
What’s my action plan?
Your action plan is a customized, and prioritized task list for you to complete so we can best recommend debt solutions that fit your needs. You can access it anytime by clicking on the menu on the right hand side of your profile. Make sure to complete any tasks that...
How do I schedule a call?
It's easy to schedule a call with one of our debt experts. Just click this link to find a time and day that works best for you!
How do I reset my password?
You can click this link, enter your email, and request a new password.
How do I fill out or make changes to my profile?
Filling out your profile is easy, just follow the guide below! 1. First, you'll want to take care of the items in your Action Plan. You can easily access it by clicking on the menu on the right hand side of your screen. 2. Make sure to complete any tasks...
How can I confirm I’m making the right choice to resolve my debt?
All the paths you can take to get out of debt can be confusing, but we're here to help you find the right choice! If you haven't already created a Resolve profile, you can do so here or you can schedule a free consultation with a debt expert. In order to...
How does Resolve make money?
That’s a great question. Most importantly, Resolve is completely free to its members. We are able to provide this great platform and service because of the partnership we've established the service providers in the Resolve Network.
Can I start a Debt Management Plan (DMP) through Resolve?
We can help you understand if a debt management plan (also known as a DMP) is a good option for you and answer any questions you have. If you're ready to start a DMP, we'll match you with a trusted credit counselor in the Resolve Network. You'll just need to...
Can I file bankruptcy through Resolve?
You can't file bankruptcy through Resolve yet, but we're working on it! When this service becomes available, we'll match you with a trusted bankruptcy attorney in the Resolve Network. In the meantime, the National Association of Consumer Bankruptcy Attorneys (NACBA) is a great resource to find a bankruptcy attorney near you....
Can I settle my debts through Resolve?
Yes, you can settle your debts on Resolve by engaging a professional debt settlement provider in the Resolve Network. After answering some questions, the platform will build you a settlement plan and then match you with a settlement expert who can handle the entire settlement process for you.
What is the Resolve Network?
The Resolve Network is a group of people and companies dedicated to helping people in distress. We’ve screened and vetted all of the providers in the Network. They share our values and have pledged to always do what is right for the members of Resolve. They do charge for their...
What types of service providers are in the Resolve Network?
We’ve pulled together some of the best debt coaches, debt settlement negotiators, credit counselors and attorneys. They can help you with debt settlement, bankruptcy, debt defense, debt management plan…and just about anything related to your debt.
Do you sell or share my information?
No. We take privacy seriously. We promise to never sell your information and we will never share your information without your express consent.
Is my information secure?
It sure is. We use bank-level 256-bit SSL encryption on our website and our databases are all encrypted. Our servers are hosted securely on Amazon Web Services (AWS), a secure hosting service trusted by the Department of Defense and NASA.
How do I get started?
We're so happy to hear that we can help you on your path to getting out of debt. If you haven't started a Resolve account already, click here to get started.
How much does Resolve cost?
The platform and debt guidance are free. You can review and compare debt relief paths for free. You can ask our experts questions for free. You can get debt settlement estimates and a settlement plan for free. The only thing that is not free on Resolve is if you decided...
How do I know Resolve is a legit company?
This is a hard question to answer, but an important question to ask. Since starting Resolve in 2017, over 20,000 people have used the platform. We’ve provided guidance on over $250 million of distressed debt. We were selected as a 2018 Winner in the Center for Financial Services Innovation Finlab....
How does Resolve work?
First, our decision-making tool asks you some questions to understand your financial situation. This will include things like your goals, debts, income and household situation. After that, it will do some calculations to see which debt relief options are available to you. We’ll answer all of your questions and when...
What is Resolve?
Resolve is a free financial management platform designed to help people experiencing financial distress. The platform will help you compare various debt relief options and can connect you with trusted, affordable debt relief providers. It's also more than just software. We have a team of debt experts standing by to...
Can I be sued during my Resolve Debt Settlement plan?
Yes, this can still happen. Please watch the video below for more information, and feel free to contact us at support@helloresolve.com if you have any questions or need help. https://youtu.be/C9kMawWpGqQ
Can I update the bank account associated with my Resolve Debt Settlement payments?
Yes, but you'll need to contact our support team who can give you specific instructions.
What if I’m unable to make a payment during the Resolve settlement plan?
If you miss a payment on an agreed upon plan, you risk losing the deal you have and potentially may have to start from scratch. Please contact us if you would like to discuss further.
Can I edit my Resolve Debt Settlement payments once I begin the plan?
Unfortunately, no. Once you have agreed to a settlement on a particular account, and do so with monthly payment terms, the payments cannot be edited. If you miss a payment on an agreed upon plan, you risk losing the deal you have and potentially may have to start from scratch....
Do I get to approve the Resolve Debt Settlement Plans?
Absolutely! We will present each offer with a comparison to the plan, a recommendation, and the fee to settle using our partners before you commit.
How much are the Debt Settlement fees through Resolve and how do they work?
Our goal is to save you as much as possible when negotiating and settling your debts. Our negotiator partners charge 15% of the savings they're able to get for you. Since their incentive is to save you as much as possible, it's a win-win for both sides! For example: Let's...
Do the Resolve Debt Settlement estimates include fees?
Yes, the fees are already included in the payment estimate(s) for your plan. You pay your settlement and then you will receive an invoice from Resolve. Our goal is to save you as much as possible, so our fee is 15% of the savings we get for you. We can...
Why are there Debt Settlement ranges in my Resolve profile?
Collections is not a one size fits all. Creditors and lenders have different recovery goals at different stages of delinquency. And each collection agency, law firm, and debt buyer will often view each of them differently. The ranges for settlement you see reflect many different variables that may or may not...
How are the number of payments in Resolve settlement estimates determined?
The estimates are based on how quickly you raise money. The system currently has a 24 month bias, but you can do it much faster if you’re able to put more money towards settling. We want to get you through this fast. The quicker you can be, the better, when...
How are the payment amounts in Resolve Debt Settlement estimates determined?
Settlements estimates are based on historical data and real time trends with each of your creditors, the collection agencies, debt buyers, and even collection law firms involved.
What is a Resolve Debt Settlement Plan?
We provide you an outline and estimate of what your settlement(s) will cost, how long the settlement plans will take to complete, and when you should target certain creditors. It’s created for you to use as a guide, and we also include our service fee so everything is transparent and personalized before you decide to proceed...
How can Resolve help me vs. traditional Debt Settlement companies? What’s the difference in fees?
Our number one goal is to assess your personal situation and understand the legitimate, viable options for you, and we are really good at that! We are then going to transparently educate and inform you of these options, triage based on your situation, and provide you with partners that can help...
Should I get help from a traditional Debt Settlement company?
We are not fans of how most debt settlement companies charge such high fees! And they often settle debts in the wrong order that allows them to get paid quickly, and not in a manner that saves you the most. At Resolve, we are biased about these companies, as we offer an alternative solution,...
Can I do Debt Settlement on my own?
Yes, many people are successful negotiating with creditors and debt collectors on their own, but be prepared to do your own research. It is hard work to optimize results. So, as for anything, there are pros and cons to this approach.
What happens if I get sued?
We have attorneys available that can represent you for as little as $200 that will continue to work on negotiating a settlement, be prepared to pay 50% or higher on lawsuit negotiations. For more information, you can reach out to our support team by emailing support@helloresolve.com or schedule a consultation appointment here!
Does Resolve have legal help available if I am sued, or am currently being sued?
Yes, Resolve can help you through legal collection issues. There are attorneys that are part of the Resolve network who regularly defend people in collection lawsuits in order to better negotiate settlement outcomes. The fee is the same, 15% of savings, but there may also be some fees associated with...
Can I be sued by my creditor while pursuing Debt Settlement?
Yes. Creditors have the right to file a lawsuit if you are not paying a debt. Being sued is one of the biggest concerns you should have before determining if debt settlement is something you should attempt. Feel free to contact us for a free consultation so we can help you calmly...
When will I be able to get a credit card, loan, car, and/or mortgage after Debt Settlement?
You can apply for credit cards, loans, car loans, and mortgages right after your last settlement payment is made.
What will show on my credit report during and after Debt Settlement?
Remarks of 30, 60, 90, 120, 150 days late, followed by a charge-off will appear. Additional trade lines could be reported later on by debt collectors and debt buyers.Once paid, it will show as a paid collection but you can still accomplish your future credit and finance goals, even with paid collections...
How will my credit score change during and after Debt Settlement?
Credit scores typically don't improve during settlements, but can improve rapidly after! Some people see a much more elastic bounce back soon after their last settlement payment, whereas for some people it can take a few years to see healthy credit score improvements.
How does Debt Settlement impact my credit score in the beginning?
Your creditors will not settle with you unless you are late with payments. On time payment history is roughly 30% of how your credit score is factored. This has a major impact on your credit score. If you are already late with payments, your credit is already impaired. Settling the...
Is there a tax impact with Debt Settlement?
Not everyone will owe tax on their settlements.If you have a debt that is settled for less than the original balance, and the difference (the forgiven portion of the debt) is greater than $600.00, this would then needed to be reported as income. In this case, you should receive a...
What are some of the risks of Debt Settlement?
Your credit score will temporarily drop, if it has not already.Collections - your account will be subjected to internal/external collections which could include being sued.You may be impacted by taxes.
What are some of the benefits of Debt Settlement?
You will likely pay less and get out of debt faster; which is a drawback and benefit. If you’ve already missed payments with your creditor, and are in collections, settling will eventually help your credit.It can improve your financial situation.It can help you avoid being sued if you’re already in...
What are the basic criteria to be eligible for Debt Settlement?
You've fallen behind on payments and the debt is "old enough" to be considered for a settlement plan (usually 5 or more months delinquent).You must be in a position to accept the terms or the amount of the settlement (have enough savings or resources to commit to a settlement in...
When are creditors willing to settle?
The timing can vary depending on who you’re working with. Creditors typically are willing to settle when you’ve become late enough to trigger the accepted protocol for loss mitigation. This is typically when you’re at least 90 days delinquent or more.
Why are creditors willing to settle?
It is an accepted business practice for creditors to take less than the balance owed, because they are unlikely to collect on the vast number of accounts that are more than 90 days late. For more information, you can watch this video: https://youtu.be/73_DKf776YY
How long does Debt Settlement take?
Debt settlements do not have a set time of completion. You could have a single account you are already late enough on, and settle it in one day. Settlements typically take as long as it takes you to pull money together to fund the deals. But try not to take...
How do creditors determine Debt Settlement amounts?
Creditors will base the settlements that they agree to on: how delinquent your account is how long you've had the accounthow collectable you look on paper (you appear to be managing at least some of your debts well)
How does Debt Settlement work?
Debt Settlement is a negotiation between you (or your representative) and your creditor (or their representative like a collection agency or collection lawyer) to pay a lesser amount than your current balances.
Why is there a range in fees for the Resolve Debt Settlement estimates?
Given that Resolve charges a fee based on 15% of the amount that our negotiating partners are able to save you, the fees will vary depending on the settlement agreements with your creditors or lenders. Because there is a range for your settlement, there is also a range for the fee....
Can I change the payment amounts or adjust the Resolve Settlement Plan before accepting?
Yes, just click the blue text in the “Payments” box that says “Adjust Payments”.
When does the Debt Settlement Plan start through Resolve?
Your plan can begin today if you're ready to proceed. That can include negotiations with your creditors and collectors if your accounts have gone unpaid long enough, and you are prepared financially to fund offers. If you are not late enough on debts in order to get the best settlement...
The number of payments in my Resolve Debt Settlement Plan don’t seem to match the estimated completion date, why?
There are varying reasons for this. Say you settled a debt for 50% of the balance owed, and are paying that in 12 equal monthly installments. Your settlement work is completed, but you're still finishing up your payments. We are constantly updating the Resolve platform. Some of these updates can...