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DEBT SETTLEMENT BENEFITS
No Credit CheckHome Ownership Not Required One Low Monthly Budget Settle Debt For Less Help With Creditor/Collection Harassment Do you need to repair your credit?
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Frequently Asked Questions
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 is just that most of us do not
choose to do those things and leave it to the experts. Our enrollment 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 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?
No, you do not have to be behind.. Program works with debtors in all stages of payments and collection, a
lthough we find that once you are behind, creditors tend to be more willing to negotiate better settlements in some situations.
How does the program work?
The first step in our program is to obtain a free Enrollment Consultation from one of our Enrollment Specialists. This is done by filling out a request form
or calling us at 1-877-350-3328 (DEBT). Our Enrollment Specialists will assess your situation and determine whether you are a good candidate
for our enrollment process.
Upon acceptance, your Enrollment Specialist will help collect and gather the information and documentation needed to assist you. After a complete analysis, your Enrollment Specialist will help you establish an affordable monthly payment, placed into a special purpose account. The savings account is use for future debt settlement purposes. The law firm will negotiate an acceptable written settlement offer and you will receive written confirmation documenting that your debt is paid. Upon successful completion of our program, if the client asks for materials on how to maintain a debt-free life we may refer them. 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 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.
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 currently owed;
Debt Consolidation can be completed two ways:
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.
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.
What if I am sued and they get a judgment?
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.
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 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.
Examples of unsecured debt includes:
Why should I not just file Bankruptcy?
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.
It may be inevitable in certain situations to file for bankruptcy.
Will I owe money to the IRS for my reduced settlement?
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
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.
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