Can I settle my debt on my own and not have to pay someone to do it?

 

   YES, you can negotiate your debts with your creditors on your own. You could also build your own home and repair your vehicle, it’s just that most of us don’t choose to do those things and leave it to the experts. Our Debt Specialists are highly experienced in qualifying clients 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 being called by collectors over the phone while receiving daily mail. Most people rather 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.

 

Do I have to be behind on my debts to qualify for your debt negotiation program?

   Not essentially. 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 deals.

 

How does the program work?

 

   First: The first step in our program is to obtain a free consultation from one of our professional Debt Analysts. This can be 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 candidate for our debt resolution program.

   Second: Upon acceptance, your Debt Analyst will help collect and gather the information and documentation that is needed for us to assist you. After a complete financial analysis, your Debt Analyst will help you establish an affordable monthly payment, which, after enrollment fees, will be placed into a personal savings account. This savings account will be used for future debt settlement purposes.

   Third: You will be assigned an IAPDA (International Association of Professional Arbitrators) Certified Debt Arbitrator who will engage your creditors and help put an end to the your debt problems. The main purpose of the program is to settle your debts for a lesser amount than you currently owe. Our negotiators can typically reduce your current debt by 40 to 60%!

   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 will be repeated for each creditor until all of your debts have been repaid. As each of your creditors receives payment, you will receive written confirmation documenting that your debt has been paid in full.

   Fifth: Upon successful completion of our program, we will provide you with proven ways to maintain a debt-free lifestyle. This will help you regain control of your finances and increase your financially stability. Additionally, we 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.

 

How does this affect my credit?

 

   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 or not you have enrolled in a Debt Settlement Plan. 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.

 

Is debt settlement like debt consolidation?

 

   No….The Debt Settlement process involves negotiating with your creditors to settle your debt for amounts considerably less than you currently owe; on average we can settle your debts for 40-60% of your current balances.

 

 Debt Consolidation can be completed two ways: 

• The first method is through a debt consolidation loan a debt consolidation loan is usually accomplished by converting 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 that you will be approved 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 that 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 there 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 the debt settlement is to reduce the overall amount of the debt, by negotiating 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.

 

How long does Debt Settlement take?

   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. 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.

 

Is there a guarantee?

   America Debt Resolutions agrees to refund to the Client, any service fee paid to us, on that particular account balance at initial enrollment .Should we be unable to obtain at least one negotiated settlement agreement from the Client's enrolled accounts within  (12) months of the effective date of the Services Contract. 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 in order to be eligible for the guarantee.

 

What will happen when we reach a negotiation?

 

   Once a debt negotiation with one of your creditors has been reached and funds are confirmed we email, fax or mail over 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.

 

• What happens if I get a judgment against me ?
• What are the different types of debt ?
• Can bankruptcy be a solution ?
• Will I owe the IRS money ?
• Will creditors call and harass me ?

What if I'm sued and they get a Judgment?

 

   What most people don't 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 is awarded, it's still up to the plaintiff to recover his money. Here's 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 Ten winners of a Judgment never see a dime."  We negotiate all unsecured debts, which include judgments. Regardless of what stage of collections a debt is in, it can be tried negotiated. If you are 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.

 

What is the difference between unsecured debt and secured debt?

 

   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 shortage balance owing on the debt after your property has been repossessed and sold.

   Unsecured debt is when is not tied to any item of property. A creditor doesn't 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.

   Examples of unsecured debt include:
· 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

 

Why shouldn't I just file Bankruptcy?

   Bankruptcy will eliminate your debt, however in the long run the price is high. Bankruptcy will stay on your credit report as a major infraction for 7-10 years. Also, most credit applications, especially mortgage applications ask, have you EVER filed bankruptcy? Therefore obligating you 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.

Will I owe money to the IRS for my reduced settlement?

   Creditors are required to 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

 

Publication 908.  

 

   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.

 

Will the Creditors Call and Harass Me calls?

If you are delinquent on any of your debts you may have already experienced these uncomfortable phone calls. However, you have rights under the Fair Debt Collection Practices Act to prohibit abusive practices by debt collectors. Most original creditors are cooperative and will update your records to indicate that you are participating in a debt settlement program. Your Senior Debt Specialist will explain how various creditors are handled. Our team of professional debt arbitrators will send engagement letters to your original creditors, at its discretion, and cease and desist letters to third party creditors and collection agencies. Be aware that despite our best efforts, there are dishonest collection agencies that will not abide by a cease and desist letter and may continue to call you.  American Debt Resolutions will instruct them to direct any and all communication to us. As your accounts might be sold to other third-party agencies our process will repeat with the new account holder.

 

 

 

We also work with the United Consumer Advocacy Network, Inc (UCAN) to ensure your rights as a debtor are not violated by over-zealous creditors or collectors Membership with UCAN is paid for by America Debt Resolutions

 

United Consumer Advocacy Network

 

 

United Consumer Advocacy Network, LLC (UCAN) is a consumer advocacy company that vigorously defends the rights of consumers against unlawful, unfair, and deceptive practices by financial institutions, particularly creditors and their bill collectors.

These rights, granted by the Fair Debt Collection Practices Act (FDCPA) and various state laws, are frequently being violated by under-trained or unscrupulous collectors. UCAN protects consumers' rights through education and enforcement of these and other laws. UCAN empowers consumers to become more aware of their position in the credit world - you can stand up and fight for your rights!
 

 

United Consumer Advocacy Network

 

 

Click For Debt Collector  Do's and Don'ts