Debt Counselling can be the very thing that saves you from losing your most prized possessions, like your car or house due to failure to repay your debts. Too many times people do not apply for debt counselling because they do not understand what it is and the full scale of the benefits that one can enjoy from this service. Here are some of those questions that people have asked us concerning the debt counselling process.
Can you incur more debt whilst under debt counselling?
No. You are not allowed to apply for further credit when you are already under debt counselling. This means that you will also not be able to use your retail accounts and credit cards or any kind of debt. Should you attempt to apply for more debt while under this process, your application is going to be unsuccessful.
Are you allowed to choose which one of your accounts you would like to exclude from this process?
If you got summons from a particular account before signing the form, the creditor can ask to not be included in the debt counselling process. In such a case, you are going to have to make your own arrangements with that particular creditor to repay the debt.
In the case that you have already referred your summons to your attorney, do let them know that you are under debt counselling.
Are you allowed to default on payments because you cannot afford to pay them back?
Absolutely not. Even though it is understood that you are struggling to make payments that is why you are under debt counselling in the first place. We recommend that you rather take a reduced interim payments to the companies that you owe. This will show them that you are indeed serious about settling your debts.
For more answers to your debt counselling questions, contact us today!