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FAQs
Q. How much is your fee, are they paid upfront?
We have no upfront fee. Our fees are withdrawn from your new settlement savings account each month. Typically our fees are spread out over a period of 18-24 months so that your monthly amount is affordable. The amount of fee depends on several factors. Our expert will give you a quotation after a free consultant.
Q. Should I put all of my credit cards in the program?
Yes. Once you take that first step towards financial freedom and enroll in our programs, all your creditors will take notice. If one creditor sees that you are paying off other accounts, they will step in and make the entire process more difficult. In the end, you will receive a better debt settlement by including all of you creditor accounts.
Q. Who controls the bank account where I am saving funds for creditors?
You do. The bank account is set up in your name and the money in the account is your money. However, our records show that setting up a new account separated from your existing bank accounts, dramatically increases the success rates.
Q. How does the program affect my credit?
In order for this process to work, and for you to obtain the best possible settlement, we ask that you do not make monthly credit card payments. This will show as delinquent payments on your credit report, which will negatively affect your credit score. However, upon your settlement is paying off, we require the creditor to agree in writing that your debt has been paid in full, with no further obligation on your part. You then use this letter to update your credit report. Ultimately, our goal is to get you out of debt at the lowest cost, in the shortest period of time without declaring bankruptcy.
Q. Will I owe taxes on my forgiven debt?
The IRS considers a forgiven debt as taxable income. At the end of the year, they will expect taxes to be paid on the settlement. The IRS, however, has a form (Form 982) available for certain hardship situations that may exempt you from this tax. Please contact a tax advisor to discuss this issue further.
Q. Do interest and late fees accrue on my accounts?
Unfortunately Yes. Typically, your balance will increase until a settlement is reached. Keep in mind that the interest is going to accrue regardless of whether you make minimum payments or not. Our attorney will negotiate substantial reductions to the balances on your accounts, even after the interest and late fees have accrued.
Q. Could I negotiate on my own?
Yes you can. But the results may not be as good as you let an expert or professional do the work for you. Most people prefer to leave these tasks to experienced people who earn their livelihood as specialists in those lines of work. In addition, most creditors simply will not negotiate with consumers in the same way that they will with experienced negotiators or attorneys. In most cases, if you go the solo route you will not receive the low settlement amount that our negotiators can get for you. Besides that, you will continually be hounded by harassing creditors who will aggressively wear you down until any settlement amount sounds good.
Q. Do you begin negotiating with my creditors right away?
We generally contact your creditors typically within approximately 1-2 weeks of your joining our program to let them know that we have Limited Power of Attorney and to request that future collection calls come to us and not you. The actual negotiation activity usually will start when you have saved up enough funds in your settlement account to make reasonable offers to your creditors. Creditors do not want to spend time negotiating unless they know there are funds available.
Q. Do you guarantee that you settle all of my debts for a certain percentage?
No. Because every case is different and there are many factors that affect the negotiation results. The degree of success of our negotiations is also dependent on your ability to save the specified amount each and every month you are in the program.
Q. Will entering your program repair my credit?
No. We are not a credit repair company, and our goal is not to repair your credit. Our goal is to negotiate settlements at less than face value on your unsecured debts.
Q. If I miss a monthly payment, will I be dropped from your program?
No. Simply call our customer service and we will arrange payment over the phone. It is understandable that circumstances may arise and we will help you get back on track with your payment schedule.
Q. How long will it take for me to become debt free?
It typically takes about 18-36 months after we've negotiated the total amount of your debt down to 40%-60%*. This includes all fees. However, if could be much sooner depending on your individual situation.
Q. I do not receive a steady paycheck. Do I still qualify?
Even if your income is irregular, our friendly customer service staff will simply take your income over the past year and find the average to determine what you should be able to deposit into your account every month.
Q. I have a co-singer on the accounts I want to settle. Do they need to approve?
Yes, your cosigner must give written approval in order for you to enroll in our debt settlement program. By enrolling you will also affect his/her credit score, so it is required that you have their permission. You may enroll in the program by not including the joint account, unless you live in a "common law" state where the partner must approve.
* Individual results will vary based on circumstances, including your ability to save sufficient funds and complete the program. We do not guarantee any results.
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