FAQ's

What is Debt Settlement?
Debt Settlement is one of the fastest and cheapest way to get out of debt.
Debt Settlement is a method of reducing or eliminating your unsecured debt by negotiating an agreed upon payoff amount with your creditors that could be as low as 35-65% your balance. Debt Settlement can save you thousands of dollars and years of repayment.

Does this program affect my credit?
If you have perfect credit, Debt Settlement will have a derogative affect on your credit. If however, you already have accounts that have been past due, it may not affect your credit any worse than it already is. Accounts that have been settled appear positively on credit reports when compared to bad debt, or a bankruptcy. Your credit will decline on the front end until the debts can be reduced, then your credit will improve again because one of the most important factors in evaluating your credit is the "debt to income
ratio". The question that must be asked is "Which is more important; getting out of debt, or protecting my credit?"
Remember a lender looks at many factors to determine credit worthiness. The most important factor remains your debt-to-income ratio. If you eliminate your debt, your credit worthiness work with your creditors to settle your debt at a fraction of what you owe. Your debts are settled in an orderly manner as agreements are reached with each of your creditors. The program typically takes 18-36 months and is complete when all debts included in the program have been settled. improves dramatically.

Can I pay extra to get out of debt faster?
Not only can you, but it is encouraged. The more money you are able to pay,  the sooner you  can be debt free. Making one time lump sums such as income tax returns, bonus checks, and gifts are a great way to accelerate your debt settlement program. There are no penalties for completing early.

Are my creditors going to continue to call me?
We notify your creditors of our representation and inform them as soon as you start the program that they should contact us with respect to settling your debt. Most creditors will stop calling within 30 to 90 days. If you continue to get calls, call our customer service department and they will again contact the creditor informing them of our representation.

Are there debts that cannot be entered into the program?
Secured debts cannot be entered into our debt settlement program. This includes home loans, second or third mortgages, equity lines of credit, auto loans, and financing contracts tied to a specific piece of property that may be legally repossessed by the creditor. Federal student loans, although unsecured, must also be excluded from the program. In addition, Federal and State taxes cannot be included.

What is the difference between unsecured debt and secured debt?
Unsecured debt is any loan or debt that has no tangible assets or property attached to it. The most common types of unsecured debt are credit cards, department store cards, medical bills, utility bills, and personal loans. Should you fail to make timely payments, the lenders only recourse is to pursue legal action.
Secured debt is debt for which the creditor has collateral in the form of a security interest in personal and/or real property. Should you fail to make timely payments on secured debt, the creditor is entitled to repossess the property and sell it.

Are there any tax consequences?
Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required 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. You need to consult your own tax advisor for advice specific to your situation.