Debt Management Questions & Answers

Who is qualified for the debt settlement program?

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.

How do I qualify for debt settlement?

Since everyone's financial situation is different, we suggest that you contact our Customer Care Center for a no obligation analysis. Within ten minutes, we will be able to see if you qualify. If you do qualify, we will review the program in detail and outline everything in writing.

How much do I have to pay for debt settlement?

Our Certified Debt Arbitrators will negotiate with your creditor(s) so you will pay less than what you owe now. To get an exact quote it depends on your creditor(s). We usually see about $0.40 on the dollar of the total balance due. That means for every $10,000 of debt, you could estimate to settle the account for $4,000 due to them. Individual results may vary based on your ability to make your monthly payment into the program and complete it successfully.

Is this a loan?

No. The entire process is to get out of debt.

What type of debt can I include?

You can include unsecured debt such as, credit cards, department store cards, collection accounts and personal loans. Please contact our Customer Care Center to review your accounts and get a monthly payment quote at no obligation.

Who is NOT qualified for our program?

If you have the ability to pay your debts in the normal fashion, by paying minimum payments, then you should honor your debts and do so. We do not advocate 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. This program is NOT for people who are gainfully employed, have high credit ratings and can meet their monthly debt obligations.

Is this going to hurt my credit rating?

We do not report to the credit bureaus. Only an experienced credit attorney can talk to you about that. Most of our clients credit rating is already damaged when entering the program. They realize it is their debt and inability to pay it off that is hurting their credit..and not their credit that is hurting their debt.

Can I be sued by the creditors?

It is a possibility, but doesn't occur often. You are being represented by an attorney, so you will always have them by your side if you need legal advice. We are an experienced full service organization with all the necessary resources to help you through this process.

What happens after the debt is settled?

If your debt has been written off by a creditor then you may receive a 1099-c form from the source. In the rare case that you do receive this from the creditor, you can complete an IRS form 982 to show your proof of insolvency at the time of your debt settlement. It is always best to consult a tax professional about your individual situation, as we do not give tax advice.

Can my wages be garnished?

It is a possibility depending upon the state you reside. You should be made aware if this were to occur. We would assist you in showing your insolvency to dispute any kind of garnishment. By law, creditors CAN NOT contact your employer.

Will the creditors stop calling me?

We make all of our clients aware that the creditors can still legally contact you within the parameters of the Fair Debt Collections Practices Act. Please note, our Customer Care Center is knowledgeable about the Fair Debt Collections Practices Act and will help you understanding and end any illegal harassment. Again, we are working for you, not the creditors.