Emilio Francisco & Associates, LLP - Attorney At Law

Frequently Asked Questions

Can my creditors sue me for not completing my payments?

Yes. Your creditors have the right to file a lawsuit to force a settlement in order to recover their money. Legal representation is specifically important for this reason. Get in touch with our lawyers now and know what options are available for you.

Will bankruptcy get rid of all of my debts?

No. The following are some debts bankruptcy will not be able to discharge:

  • Alimony and child support
  • Education Loans
  • Tax debts
  • New purchases owed that are more than $1,000 for luxury goods or services.
  • New cash advances that are more than $1,000

Who should opt for your program?

Our services are designed for people experiencing financial distress who are looking for ways to regain stability.

Who is NOT qualified for our services?

The Debt Reduction Law Center NEVER advocates that any person default on their debts. This program is not designed to negotiate debts for people who have reasonable means to pay off their debts. If you can pay your debts in the usual fashion, by making minimum payments, then you should honor your debts, and do so. This program is NOT for people who are gainfully employed, have high credit ratings, and can meet their monthly debt obligations.

How long will the process take?

Generally, our clients may become debt-free after two years. However, processing can take longer depending on the circumstances surrounding your loan.

Will this affect my credit standing?

It depends. If you have no history of delayed payments until recently, our debt negotiation process will initially hurt your credit score. However, using our program to reduce your debt may help you improve it as you pay off each creditor at a fraction of what you originally owed them.

Is my information confidential?

Yes. You can rest assured that we keep will treat your information with utmost confidentiality.

What will I pay for your services?

The Debt Reduction Law Center’s debt settlement program requires a retainer fee of 10% of the amount of debt that you bring into our program, and 15% of the amount we save you. Here’s an example: say you have $15,000 worth of debt. Your 10% retainer would be $1,500. Your $15,000 is settled for $6,000, saving you $9,000. Your fee would be 15% of that$9,000, or $1,350. All this is calculated into your monthly payment that our highly qualified consultants will quote you. There are NO OUT OF POCKET COSTS.

How do I apply for your program?

The first step is to complete the short form on the right. Our legal specialists will then contact you within 24 hours to discuss further details.

Does Debt Settlement have a negative impact on my credit?

Yes. How damaging it will be depends on your situation. Most of the accounts you place into negotiation are likely to be “charged off” and show up negatively on your credit report. However, once our legal team has settled this debt, it is reported to the credit bureau as balance zero or paid in full. After we settle all your debts, your credit will improve significantly.

Can DRLC stop my creditors from calling and harassing me?

No. Your creditors have the right to try to contact you, in order to collect. However, we have been very successful in eliminating most harassing telephone calls. If your account is in collections, however, collections agencies have to adhere to the Fair Debt Collection Practices Guidelines. You can redirect creditor calls to our hotline at (510) 451-4450. You can also download a form for keeping track of calls at the finance management tips and tools page.

Does DRLC repair my credit?

No. The Debt Reduction Law Center does not engage in credit repair services. No company can remove legitimate negative items from your credit report. Those negative items will remain there, in accordance with the conditions imposed by the credit reporting agencies. However, paying off your debt according to reduced monthly payments may reflect positively on your credit report. These can be achieved by settling your delinquent accounts.

Can I negotiate with my creditors on my own?

You can. However, this process would be a long and complex one for the average consumer. Our legal team is made up of experts who are familiar with how creditors negotiate, with over 31 years of experience. Due to their contacts and expertise, they have been known to acquire the biggest debt reductions for consumers.

What are the tax consequences?

Your creditors will report any canceled or settled debts exceeding $600 to the IRS, and you will be required to report this as income on your annual tax return. The IRS does permit you to write off any “income” from canceled debts up to the amount which was discharged. The Debt Reduction Law Center recommends that you consult with your tax adviser for advice in how this will apply to your situation.

Click here to apply for our debt negotiation program or browse through our pages to know more about the debt settlement process.