F.A.Q.

What is Debt Settlement?
A great number of borrowers find themselves unable to pay back the loans the take. Financial difficulties makes payment impossible and therefore the borrow ends up with huge outstanding debts. Debt consolidation is the solution that allows you to get out of your bad debt and reduce the amount you owe by 40-60%. Debt management is performed by trained specialists who negotiate on your behalf with your lenders and suggest them the ways to settle your debt.

What requirements do I need to meet to qualify for your Debt Settlement Program?
The first thing you need to do is to fill out our application form. Then our Debt Counselor will talk to you to find out what is your financial condition, the origin of your debt and provide you a free consultation on the possible debt solutions. We are not aimed at attracting customers whom we aren’t able to help. Our goal is not to produce a temporarily debt relief but complete debt elimination. If you face certain legitimate financial hardships you are very likely to be accepted for our Debt settlement Program. But, not everyone can be accepted.

Is your program similar to credit counseling?
Our Debt Settlement Program differs considerably from credit counseling. Debt management offered by credit counseling programs implies that you repay the amount you owe in full while with our debt settlement your get debt reduction up to 40-60%. The repayment you make under credit counseling program may last as long as 5 years and the only reduction you have is lowered interest rates. Companies that offer credit counseling are subsidized by the creditors and therefore you still depend on the people who borrow you the funds. The payments are maid through the counseling company and you will probably not damage your FICO score. Nevertheless your credit history will be “spotted” by a special CC (credit counseling) mark. Later on that will adversely influence your future loans terms and conditions.

Should I consider bankruptcy?
Bankruptcy is the last and most unwanted measure you may undertake to get debt relief. Once you experience bankruptcy, your creditworthiness will be damaged for the nearest 7-10 years. With bankruptcy on your credit history you are to face difficulties when applying for loans and finding an employment. In case you are employed and have clear intentions to consolidate your debts in order to become debt free contact us to get a free initial consultation. If debt solutions are possible you may enlist for your Debt Settlement Program.

What about taking a loan?
Your loans or the inability to repay the amount you have already borrowed are right the problem we are going to save. Another loan may only make the problem more complicated. Most lenders won’t write you any more loans at all. You may qualify only under extremely unbeneficial conditions and with collateral that may be a tricky thing %u2013 in case you are not able to pay back you will loose your collateral and more often it’s your home.

Who is considered to be a perfect client?
A perfect client for us is the one who:

• Has a bad debt and looks for debt management
• Is unable to repay the debt
• Has a positive cash flow
• Considers bankruptcy but searches for debt solutions to avoid it
• Has at least $10,000 in unsecured debt
• Faces hardships of any kind (divorce, illness, etc.)

What is Unsecured Debt?
Unsecured debt is not provided with collateral (collateral is some form of property, mainly your home). Unsecured debt usually includes credit cards, commercial debts, personal loans, medical bills, and consumer debts.

What is Secured Debt?
Secured debt is a loan provided with collateral that usually your property %u2013 your home or some values. In case you are unable to pay the loan back your creditor may legally repossess the collateral and hence you will be deprived of your home and whatever you state as collateral.

Do all the creditors support your debt consolidation solutions?
We treat different situations differently. Being in the business for several years, we have established contacts with a great number of creditors and now what their conditions are. The creditors we have worked with agree to provide you a debt reduction but offer different percentage. Our estimates of how efficient your debt consolidation may be are based on the information we receive from your creditors. We do accept into our Debt Settlement Program the creditors that are not flexible enough to agree with the debt management solutions beneficial for both of you.

What if I do not have enough funds to cover the debt settlement?
You control what debts are settled and what are not. If you have limited amounts available you can start with partial debt consolidation and try to save more money during the negotiations about your debt settlement. We can ask the creditor to give you a deferment until you have accumulated the funds required. The debt solution may be found earlier than it is planned and therefore we strongly recommend that you should not delay the payment till the time considered in the plan. The debt consolidation is possible only in case we operate as a partnership therefore we expect you to help us with finding the best possible debt solution.

Is it obligatory to include all of my debts in your Debt Settlement Program?
It’s up to you to choose that debts you want to include in our program. But in case you do not include any unsecured debts in our program it’s important that you provide us with all the information about your other debts. The creditors that participate in our program may refuse to negotiate on condition that you pay other debts and do not pay the debts included into debt management program.

Should I pay additional taxes during the debt management? Debt settlement influences the amount you pay in taxes. When a debt is canceled the amount that was forgiven should be included into your gross income. Then the taxes are calculated at a normal rate. If you have several debts settled in different years you are to pay the taxes correspondingly to the time each debt was settled. The calculations are usually as follows: For instance, you have a $15,000 debt to a creditor. The debt was settled at $5,000. The rest $10,000 are considered your income and charged with taxes. Having a tax rate of 20% you are to pay $2,000 in taxes. However, even despite the taxes you save $8,000 after the debt settlement. Other debt solutions may be possible in each individual case. Regarding your financial situation you may declare insolvency and do not pay taxes.

Will my credit be affected?
We do not send any information to the credit bureaus. But your creditors may inform them that you are taking part in debt elimination programs. You credit records will hardly be improved after the debt settlement. Debt reduction programs usually affect your credit scores adversely. After the debt settlement the mark “open delinquency” will appear that means failing to perform regular payments. Nevertheless, after we manage a debt relief and settle you debt you will pay “in full” and the negative mark will not be made. Our debt settlement program will help you to improve your creditworthiness as your debt to income ratio will become better. Besides, as you make efforts to find any debt solutions and avoid the bankruptcy your future creditors will treat you as a reliable customer. Make sure you realize that the first thing we care about is your debt settlement that means paying your debts instead of declaring bankruptcy. Whatever effect it may produce on your credit score debt settlement allows you to get out of debt and save your creditworthiness whereas bankruptcy will affect you ability to qualify for the loans and even to find employment for 7-10 years.

Do I pay my creditors myself?
Our debt settlement program implies that you pay the funds to your creditor by yourself. We are not a credit counseling bureau and we do not disburse any funds to your creditor. Our goal is to eliminate your debt by managing a debt settlement. If you are able to pay off your debts we expect you to do this. While in our debt settlement program, you are to transfer the funds from the settlement account you opened in the bank.

How soon will I get a debt reduction?
We treat each case individually. Your budget and ability to pay back are the factors that influence the duration of the debt management greatly. Debt settlement is finished as soon as you are able to cover the debts after the negotiation. In case you have enough funds you ca get out of debt as soon as in 4 months. However, the average length of the program is 12-36 months.

Will I still receive calls from my creditors when I’m in the program?
You may, but the majority of creditors will stop calling you and will negotiate only with us. Once you are enrolled in our debt settlement program, we send the creditor cease letters. Creditors will update their records to indicate you are taking part in a debt management program and thus they will contact us to offer any debt solutions. However, it may take 30-60 days to update the data about your debt. Since we are you official representatives collection agencies are to stop calling you but be aware that not all of them abide by the law therefore you may still receive phone calls from them. In case phone calls continue you can make a complaint.

Can be legally sued?
Creditors reserve the right to sue you and use legal methods to make you pay back the amount you owe. The majority of creditors prefer to avoid lawsuits if possible and therefore they sue only the clients who do not communicate or pretend to be insolvent having enough funds to cover the debt. You may only be sued in case your creditor has an attorney in your state. Besides, it’s not cost effective for creditors to sue you as garnishment requires time and money. Moreover, creditors may only get their money back in case you have it. The garnishment is valid only when you are employed and is temporarily ceased when you lose your job. Your home equity is usually protected by your state laws. As a result, it’s more beneficiary for creditors to negotiate and give you a debt reduction than to file you. We can’t give you any guarantees that you won’t be sued, but our experience allows us to state that our debt management will help you to avoid a garnishment.

Can my home equity be used to cover my debts?
Home equity may become a means to collect the funds needed more quickly. We have established contacts with mortgage companies that can cooperate with us during debt settlement programs. Your debt counselor will examine your case and in case you have available home equity mortgage companies will be contacted.

What fees do you charge?
Our fees depend on the amount of money you owe. The percentage we take is one of the lowest in the country. In case the completion of out debt settlement program was impossible for some reasons, you will have a right to get a reimbursement of all the unused fees. Your debt counselor will give your all the information about our fees and will written it out for you. Our debt settlement program involves much less expenses than legal fees and attorneys that cost hundreds and thousands of dollars. The fees we charge are transferred via the bank account.

Do you guarantee privacy?
All the information you provide is kept confidential and private. Please, for more detailed information read our privacy and confidentiality policy.