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FREQUENTLY ASKED QUESTIONS
Is DCSD a bankruptcy? The DCSD program is not a bankruptcy. It is a legal service for clients which has the same effect as a bankruptcy, namely that the client ceases paying his debts and is freed from harassment, garnishment, and, in most cases, foreclosure of property. Is my home protected? If a debtor has significant equity in his home, it may be subject to a lien and foreclosure by a creditor. Depending on your situation and state of residence, our attorneys can advise you on strategies you may employ to protect your home from judgment creditors. Can I still use my credit cards? No. Because you will no longer be making payments on them, the accounts should be closed. How soon can you contact my creditors? Once we have received your application and the processing fee, the creditors/collection agencies will be notified within 10 business days of our representation. After that, all harassment should cease. What if I continue to receive phone calls and collection letters? Most collection activity will cease when our letter of representation is received. However, if you continue to receive phone calls or letters, you can contact DCSD and we will send a warning letter to the caller that spells out the law against harassment. If you receive a collection letter, forward it to our office for handling. You should be free of all harassment within a very short period of time. Will the program affect my credit report? Creditors report any customers who have stopped paying their bills to the credit bureaus. Although the DCSD program is not a bankruptcy, failure to pay back debts does significantly affect an individual’s credit rating. How much does it cost? There is a one-time processing fee of $200 and a monthly fee of as little as $20, but no more than $35 depending on the number of accounts serviced thereafter for continued legal representation by the lawyers of DCSD. In other words, you are hiring a lawyer for as little as $20 per month to represent and advise you about your debtor’s rights and protect you from harassment. DCSD lawyers will not represent you in court, but if you are sued, we will notify the creditor/collection agency or their lawyers that you are judgment-proof and suggest that they dismiss the suit. Remember, if a creditor or collection agency does obtain a judgment against you, it is uncollectible. Will you send me a bill every month? Yes. On or about the first of every month, you will receive a bill for the payment required to retain the DCSD service. Will I sign a contract? Yes. Every DCSD client signs a Lawyer-Client Agreement that fully discloses the relationship between the debtor and the DCSD lawyers. The terms of this contract create a fiduciary duty owed to the client by the attorneys of DCSD. |
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