A debt settlement program is only for people facing financial HARDSHIP. This means
people who are late on paying their debts, have little or no ability to pay their
debts in the future and are facing a possible bankruptcy.
Who is NOT qualified for a debt settlement program?
This program is not designed to negotiate debts for people who have reasonable means
to pay off their debts. If you have the ability to pay your debts in the normal
fashion, then you should honor your debts and do so. This program is NOT for people
who have high credit ratings and can meet their monthly debt obligations.
Complete the form online. A debt consultant will review your information and call
you to review your situation. After a debt consultant has reviewed your financial
situation and hardship they will determine if you are qualified for our program.
You will be asked to put aside and save a set amount of settlement funds on a monthly
basis. This amount will be determined in your initial analysis based on total amount
of debt and will be in line with your income and expense budget. Each person's situation
is different and the negotiation process will begin at different times depending
on the amount of your debt and your ability to save funds. Once the creditors agree
to a settlement amount, we will present this offer to you. If you approve of the
settlement, we will instruct the creditor to fax over the 'settlement offer' in
writing and notify you, so that you can release funds to the creditor.
Anyone considering our program should also contact a bankruptcy attorney to determine
if their situation warrants filing for bankruptcy. Using the Debt Settlement process
does not guarantee that you will not have to file for bankruptcy in the future.
YES. Your credit score will decline due to entering this program. How much it will
decline depends on your original circumstances. Most of the accounts you place into
negotiation are likely to "charge off", which will reflect negatively on your credit.
When a settlement is complete the creditor should notify the credit bureaus that
the account has been settled.
NO. All credit cards in the program will not be active and you will not have credit
privileges. Any cards you DO NOT put into the program should not be used. This program
is for you to get out of debt.
You will pay a fee which is calculated based on the total amount of debt enrolled.
All costs and fees are always fully disclosed and you are required to sign for approval
before you commit to our program.
NO. There is no guarantee that your creditors will negotiate with us or that your debts will be reduced.
YES. Your creditors certainly have the right to sue to recover their money.
NO. Your creditors have every right to try and contact you in order to collect a
debt. If your account is in collections; collection agencies have to adhere to the
FDCPA Guidelines. If you would like to learn more please read Fair Collection Practices
Act. This defines when and how a creditor may contact you.
NO. Companies cannot remove legitimate negative items from your credit report. Negative
items will remain on your credit report according to the conditions imposed by the
credit reporting agencies. The goal of a Debt Settlement program is to settle your
delinquent accounts. When a delinquent account is settled this is reflected on your
credit report.
YES. The creditor first has to sue you, successfully obtain a judgment, and then file for a garnishment action.
Your creditors will report cancelled/settled debts exceeding $600 to the IRS and
you are required to report the same as income on your annual tax return. However,
the IRS permits you to write off any "income" from canceled debts up to the amount
by which you were "insolvent" at the time. You need to consult your own tax advisor
for advice specific to your situation.
YES. You can negotiate your debts with your creditors on your own. As a matter of
fact if you successfully negotiate a debt it may cost you less in the long run to
use this approach than to use our services.