FAQ about Debt Settlement

What is Debt Settlement?

Debt settlement is, in fact, a perfectly legal solution for consumers who are in deep and seeking an alternative to bankruptcy. Other words, its payoff amount agree between you and your creditors, thus you are able to save huge some of money and years of repayment.

How do I qualify for your Debt Settlement Program?

In order to encourage our help you should full fill easy online application form, after which qualified specialist courteously provide you with useful and absolutely free consultation at the result of which we’ll make a plan and chose for you the most loyal program. We are interested in avoiding debt problem from your life, trying to do this as quickly as possible for rather affordable prices for you.

Is this the same as consumer credit counseling?

Telling the truth between consumer credit counseling and debt settlement program there is a great difference, which lies not only in way the problem is used to be solving, but the main, in results which it gives after all. Credit counseling has no effect on your principal balance, another word, here you repay the debt in full, at reduced interest rates, paying twice more to the credit counseling companies at the same time. Besides, such companies commonly cooperate with your creditors and in any case are not interested in solving your debt problem. All these actions may lead to worthiness of your company reputation at the end.

What about bankruptcy?

A lot of companies and private entities scared of bankruptcy and think that it’s the end of their carrier; of course this is rather unpleasant situation, not only for financial status but for further reputation. But with the help of our high qualified specialists you’ll get professional consultation and help concerning avoiding of bankruptcy, or at least its consequences.

How about a loan?

Loans are rather risky deal, securing it with collateral you may easily lose it. And what if this collateral was presented by your car or even worth – home? So, in order to have a deal with loans you should think twice even after getting useful consultation.

Who is an ideal candidate for Debt Settlement?

• People who have difficulties making payments on their credit card debt in connection with their life conditions, such as: illness, disability, divorce, job loss, or a reduction in pay.
• People who had a deal with credit card debt on amount more then $10,000.
• Those persons which can’t solve their debt problem themselves due to some reasons.
• People who are not sure if their credit may be negatively impacted during the whole program.
• People who has made unsecured purchase such as a house or car.
• People who can’t easy communicate with creditors by phone and deal with them after all.

What is the difference between unsecured debt and secured debt?

There are two forms of debt: unsecured and secured debt. The main difference between them is rather visible and has different consequences in both cases. Unsecured debt is any kind of debt which is not fixed by some material values or assets. Most of all unsecured debts presented in a form of credit cards, department store cards, medical bills, utility bills, and personal loans. Another deal is secured loans, in case of unpaid, creditors may take away your property or other values, you have secured your debt with. Remember, you may still be liable for any deficient balance remaining after the sale of the property by your creditors. In order to avoid problems, before going to secure your debt take qualified consultation.

What if I cannot pay the settlement?

Whether settlement will made or not depend on you. If you can pay for the settlement then it will be made. In some cases you may see attractive settlement offer which is reached earlier than anticipated. If it’s possible take advantage of this offer, making an effort to eliminate your debt by the plan we’ll develop for you. Don’t forget that we are interested in solving your financial situation as quick as possible.

How many debts can I include in your program?

It’s up to you how many problems you’ll let us to solve! You may select some of your noising unsecured debts or collect them all and give us to cut them off from your life! In order to ease the work, please tell our consultant about all your unsecured debts.

How does this affect my taxes?

As a rule debt settlements are recorded on your tax filing. For instance, if you have three debts which were settled in different years, then you would only owe taxes in the year in which each individual settlement occurs. Example: You owe Creditor A $20,000 and we settle it for $8,000. You have saved $12,000. Your tax rate is 25%. You would owe $3,000 in taxes (25% of the $12,000). Even with the taxes, you are still saving $9,000 in this example. If you have specific financial situation, you may be able to claim insolvency and not owe these taxes. In any case, if you have questions and want to know more about this problem, please, contact your accountant.

Will Debt Settlement affect my credit and in what way?

Solving the problem of debt, debt settlement may have scathing effect on your credit. Creditors don't settle unless you're severely behind on your payments. That means one thing: Debt settlement is damaging to your credit. Just how damaging it is depends on your track record. If you're already behind on payments, your credit will suffer less than if you've managed to avoid delinquencies and credit charge-offs.

How long does it take to organize Debt Settlement?

The longevity of whole debt settlement depends on your total debt balance and funds you are able to provide for settlement. Every situation is different. The goal of our company is to get rid you of your debts, for the lowest prices and as soon as it is possible to organize.

Can my creditors sue?

With bankruptcy, creditors have to stop collections efforts as soon as you file. That's not the case with debt settlement. Creditors maintain the right to use legal means to collect a debt. Even if you inform your creditors of your efforts to settle, they won't stop trying to collect. Worst-case scenario, they could sue you for the amounts you owe. Should that occur the only way to avoid a black mark on your credit record would be to pay off the debt in full. So, the main our task is to find possible way of solving the problem which will satisfy everyone before legal action is taken.