What types of debt can be resolved?

Most unsecured debt including credit card debts, lines of credit, medical bills and personal loans can be negotiated.

Are you going to be making monthly payments to my creditors for me?

The purpose of the program is to negotiate down the balance of your debts. We do not make monthly payments to your creditors. As you begin to save money each month, our negotiators will begin negotiating your debts with your creditors. As we get offers, we will relay them to you and you will decide whether to accept or decline the offers. Once you approve an offer, you will authorize payment to the creditor.

Can I be sued while enrolled in the program?

Any time you are in hardship and unable to pay a creditor, you can be sued. This can happen whether you are on our program or not. In the event you do get sued, make sure that you fax the documents to us immediately. While we are not able to stop a creditor from suing you, we will definitely be able to begin negotiating your account and attempt to close it out ASAP. Once we receive the documents on our end, we will immediately contact the creditor to negotiate. We will also contact you within two business days to discuss everything. If you don’t fax the documents to us within the appropriate timeframe, it may be more difficult to settle with the creditor. Keep in mind that we can always get you on the phone with your state licensed attorney for some legal advice.

How will this affect my credit?

The program will have a negative effect on your credit. How severe your credit will be affected depends on your situation prior to enrolling. As settlements are paid, you will receive documents showing that the creditor has been paid and the account is at a zero balance. As your accounts are settled and your debt ratio improves, your credit rating will begin to re-establish, provided that the rest of your credit is clean. The main focus of our program is getting you out of debt as soon as possible!

Do I have to stop paying my creditors?

We cannot tell you to stop paying your creditors. However, we can tell you that this program is designed for people in financial hardship. If you feel that you can afford to continue to pay your creditors, then this program may not work for you. Remember, the creditors are willing to negotiate with the understanding that you are unable to fulfill your original agreement.

Can I do this myself?

Yes, you can do this yourself, but keep in mind that our negotiators and lawyers have extensive experience in dealing with creditors and collectors. They put together a strategy specifically designed for your situation. One of our experienced negotiators or attorneys will be in contact with your creditors to give them the attention that they require. With our knowledge of the industry, we know what works!

What are the tax consequences?

You may have to claim any saved amounts as income for that tax year. However, if you are insolvent, you may file a form 982 which will forfeit any taxes owed. Please speak to your accountant regarding this form.

Will interest and late fees continue to accrue on my accounts? Yes they will continue to accrue, however, our firm settles accounts based on your enrolled debt amount. The average for the firm is approximately 42% (42 cents on the dollar) of the enrolled debt on all settled accounts.

Can you stop creditors/collectors from calling me?

Anytime you are unable to pay your creditors, a creditor/collector has the right to call you. We will provide you with information in your Welcome Package which will help you in dealing with collector calls. It is important that you follow those instructions if you are receiving too many calls and it is extremely important to always communicate with your Account Manager about the calls you are getting. Your Account Manager will help you to slow the calls significantly, but you must follow the instructions they give you. We’d also like you to be aware that there are laws in place which protect you from creditor harassment. It is the belief of the law firm that our clients must be protected from unscrupulous collectors who violate state and federal collection law. For this reason, all clients receive free legal representation in the event that it is determined that the collector violated FDCPA law. The law firm will provide an attorney, at no additional cost to you, to file suit against the collection office or creditor once the violation is proven to have taken place.