Your Options

1. Can I settle my debt on my own and not have to pay someone to do it?
2. Do I have to be behind on my debts to qualify for your debt negotiation program?
3. How does the program work?
4. How does this affect my credit?
5. Is debt settlement like debt consolidation?
6. How long does debt settlement take?
7. Is there a guarantee?
8. What will happen when we reach a negotiation?
9. What if I am sued and they get a judgment?
10. What is the difference between unsecured debt and secured debt?
11. Why should I not just file Bankruptcy?
12. Will I owe money to the IRS for my reduced settlement?

YES, you can negotiate your debts with your creditors on your own. You could also build your own home and repair your vehicle, it is just that most of us do not choose to do those things and leave it to the experts. Our debt specialists are highly experienced in qualifying clients to get out of debt quickly while saving money in the process.

The settlement process is usually very emotional and stressful, especially when you are the one called by collectors over the phone while receiving daily mail. Most people leave these duties to experienced trained IAPDA Certified Debt Arbitrators who maintain relationships with numerous consumer-lending institutions and negotiate with creditors and collectors on a daily basis.

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No, you do not have to be behind.. America Debt Resolutions debt negotiation program works with debtors in all stages of payments and collection, although we find that once you are behind, creditors tend to be more willing to negotiate better settlements.

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First: The first step in our program is to obtain a free consultation from one of our professional debt analysts. This is done by filling out a request form or calling us at 1-877-350-3328 (DEBT). Our debt analyst will assess your financial situation and determine whether you are a good candidate for our debt resolution program.
Second: Upon acceptance, your debt analyst will help collect and gather the information and documentation needed to assist you. After a complete financial analysis, your debt analyst will help you establish an affordable monthly payment, placed into a personal savings account. The savings account is use for future debt settlement purposes.
Third: An IAPDA (International Association of Professional Arbitrators) Certified Debt Arbitrator will engage your creditors to either settle the current debt amount with a lump sum payment or settled with payments and put a end to the debt problems. The main purpose of the program is to settle your debts for a lesser amount than you currently owe.
Fourth: Once we negotiate an acceptable written settlement offer, we will arrange for you to send funds from your personal savings account to pay off that debt. This process repeats for each creditor until all of your debts are paid. As each of your creditors receives payment, you will receive written confirmation documenting that your debt is paid.
Fifth: Upon successful completion of our program, if the client asks for materials on how to maintain a debt -free life we may refer them.

 Additionally, we may refer you to a credit restoration company that can help remove inaccurate, erroneous, and unverifiable information on your credit report. This will help in regaining a positive credit rating.

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If you do not make required minimum payments to your creditor you may be breaking the terms of your contract with them and your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is correct whether you have enrolled in a debt settlement program or not. Upon enrolling in a debt settlement program, your credit score will most likely get worse before it gets better; on the other hand, this is a minor price to pay for being given a substantial debt settlement and not having to file for bankruptcy. After settlement, your creditor may report that the account was "settled for less than the full amount" on your credit report.

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No. The debt settlement process involves negotiating with your creditors to settle your debt for amounts considerably less than currently owed;

Debt Consolidation can be completed two ways:

• The first method is through a debt consolidation loan. A debt consolidation loan converts unsecured debt into secured debt via a home mortgage, which usually takes the form of a home equity loan. (If you do not have enough equity, bad credit, or too much debt, it is not likely to receive approval for a debt consolidation loan). In summary, if a lender has a house as collateral (and is not paid), there can be a mortgage foreclosure and one's home can be taken away. In a consolidation loan, a consumer is paying a good deal of money in closing costs, fees and interest for the privilege of putting his/her most value asset at risk-usually the right method.
• Secondly, through a debt consolidation service also referred to as Debt consolidation counselors, which declare to provide help and direction for people with debt and credit problems. They call themselves non-profit debt consolidation companies, but this can be misleading. The bottom line is that these "non-profit" debt consolidation companies are funded by the credit card companies who they are hypothetically "negotiating" with to help you. They claim that they will work with your creditors to provide you lower interest rates and payments. However, you pay a fee to have these services monthly and it is to their best interest to keep you in the program as long as they can and pay back almost every dime you owe. Debt consolidation may also take the form of unsecured loans or transferring credit card balances to a new provider.

Therefore, the goal of debt settlement is to negotiate agreed payoff amounts with your creditors. This will save you sizable amounts of money on debt principal and interest. It also provides you with the opportunity to pay-off your debts faster.

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This really depends on your total debt balance and the length of time it takes for you to build up the necessary funds to settle. The typical debt settlement program can vary between 12-36 months or longer. Every situation is different and the amount of time it takes to clear your debts is largely dependent on your current financial situation. Our intent is to get you out of debt as quickly as possible but we also understand that you have other financial requirements. We will customize a program that meets your budget constraints and your financial goals. One of our credit analysts can give you a free, confidential consultation about your specific situation.

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America Debt Resolutions agrees to refund to the client, any service fee paid to us, on that particular account balance at initial enrollment. The Client must be enrolled with American Debt Resolutions for a minimum of (12) months and adhere to all terms outlined in the Service Contract. Note: You must have sufficient funds to settle the account to be eligible for the guarantee.

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Once we reach a debt negotiation with one of your creditors and we confirm funds, we email, fax or mail to you the terms and conditions of the negotiated debt agreement for your approval. It is exclusively your choice to decide whether on not to accept the negotiated debt agreement. If you consent to the negotiation, you send a cashier's check or money order directly to the creditor from your dedicated checking or savings account set up for the program.

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What most people do not realize is that winning the judgment is only half the battle to the creditor. The hard part is collecting the money. You see, even when a judgment get awarded, it is still up to the plaintiff to recover his money. Here is why: The court does not require the debtor to pay, and will not even help collect. The result is that millions of judgments are just sitting in files. "Nine of 10 winners of a judgment never see a dime." We negotiate all unsecured debts, which includes judgments. Regardless of what stage of collections a debt is in, it can negotiate. If you get sued, a lawsuit is to force a settlement on the matter. In our experience, most creditors would rather not go to the expense of suing and simply try to negotiate a settlement.

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A secured debt is a debt in which the creditor maintains a security interest in an item or piece of personal property such as home mortgage, vehicle loan and just about all finance company loans are secured debts. If you fall behind on payments, the lender can repossess the property that originally secured the debt. The creditor can institute a foreclosure or repossession to take the property identified by the lien, called the collateral, to satisfy the debt if you default. An added drawback to secured debt is the fact that you may remain accountable for the remaining balance owed on the debt after your property gets repossessed then sold.

Unsecured debt is when is not tied to any item of property. A creditor does not have the right to grab property to satisfy the debt if you default. If you fall behind on an unsecured debt, lenders can take legal action against you, but more commonly will try to work out a reasonable debt settlement. Unsecured debt is any loan or debt that has no tangible assets or property attached to it.

• credit cards
• department store cards
• legal bills
• unsecured personal loans
• health club memberships
• magazine/record clubs fees
• cellular telephone bills
• signature loans
• collection agencies
• credit lines

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Bankruptcy will eliminate your debt, however in the end the price is high. Bankruptcy will stay on your credit report as a major infraction for 7-10 years. In addition, most credit applications, especially mortgage applications ask, have you EVER filed bankruptcy. Therefore, you are obligated to notify them of the bankruptcy even if it is off your credit report. Bankruptcy is also part of your public record. Any background check for employment or other purposes will uncover that you have filed for bankruptcy. This could affect your ability to find a job, especially in financial services.

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Creditors may report canceled debts exceeding $600 to the IRS, and you are supposed 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. Therefore, unless you have a positive net worth, then you ordinarily will not be obligated to pay taxes on the forgiven amounts. Additionally, if you do not qualify as insolvent, non-principal amounts such as fees accumulated on the account may be deducted from the amount reported. Refer to www.IRS.gov

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IRS form #982 for Insolvency.

Note: This should not be considered legal advice. America Debt Resolutions, LLC does not provide tax, legal or financial counsel. We recommend if you need any type of legal or tax related advice, contact a licensed attorney or a qualified accountant.

1-877-350-3328