|
Here are some typical questions we often hear:
This sounds unreal. Does this really work?
Debt settlement is a proven system that brings financial recovery. Working with experienced settlement negotiators, this system helps debtors achieve a fresh start.
- Settle for a percentage of what is actually owed
- Find an alternative to bankruptcy
- We can negotiate your debt in a time frame that best fits you
Is debt settlement legal?
Yes. It is legal to reach a settlement of any debt in as much as it simply creates a new contractual obligation for the debtor to complete.
How does it work?
The process is amazingly easy:
- First, one of our experienced specialists renews all of your debts.
- You determine how much you can afford to put into an account monthly that will be used to negotiate settlements with creditors on a debt by debt basis.
- As you save enough for each particular debt, we will make contact with that creditor to negotiate settlement of that debt, saving you a substantial amount.
- Lump Sum Option: If you have access to a lump sum amount of money, we can immediately begin negotiations with your creditors. Clients who have a lump sum for this type of settlement usually receive the best outcomes because the settlement percentage is significantly lower.
To get started or to request a free no-obligation consultation, call 1-877-860-SETTLE (7388).
What would I do to begin this process?
It's easy. Call 1-877-860-SETTLE (7388), or click here.
What is the IRS position on debt that is forgiven and subsequent debtor liability?
In most cases, debtors can exclude forgiven debt from their income through the "insolvency exclusion" provided by the IRS code. This exclusion means that your liabilities exceed the fair market value of your assets. However, in the event that a forgiven debt amount exceeds $600.00, financial institutions sometimes provide a Form 1099-C through the “discharge of indebtedness income” statute. We strongly recommend that you consult a tax advisor /tax attorney regarding your particular circumstances.
How does Debt Settlement affect my overall credit score?
Debt management intervention will impact your credit and affect your overall credit score. Any time you stop payment on your bills, your creditors have the right to report your credit history as late or delinquent. However, the goal of debt settlement is to help you get out of debt and back in a position where you can meet all of your debts timely which will only then serve you well by a swing upward and an improved credit score.
What if my payment history is good?
Your credit score is comprised of two main factors: your payment history and your debt-to-income ratio. Many people often mistake a good payment history with having good credit. However, if all of your monthly take home pay goes back out to paying bills, chances are you currently have a debt-to-income ratio that is already affecting your credit rating. If this is the case, your primary concern should be to immediately reduce your expense overhead.
How long will it take to settle my debt?
Each situation is unique. The time it takes to get through your individual recovery program depends on multiple factors, all of which will be explained to you during your initial free consultation your debt specialist who will be able to explain timing to you. Because our settlement process negotiates a reduction of your total principal balances, most of our clients are able to obtain agreeable settlements with all of their enrolled creditors in 36 months or less, in most cases. Also, keep in mind that if your income or financial situation improves at any point, you always have the choice of accelerating the program to resolve your unsecured debt even sooner.
Who controls the monthly checking account for allocations to creditors?
You do. A checking account is set up by you and maintained by you. Our process helps you discipline yourself to add the required funds on a monthly basis to the checking account during each month of the program. And keep in mind that this amount is usually much less than the total minimum monthly payments you are accustomed to making monthly on your credit cards. The more you put into the checking account, the faster you can accelerate your program.
Couldn't I handle these same negotiations on my own behalf without paying your fee?
Sure, as long as you feel competent to do so. Remember, though, that we are trained professionals who have years of experience in debt settlement. Our job is to settle your debt as quickly as possible.
What is the difference between secured debt and unsecured debt?
Unsecured Debt is any type of debt that is not secured by a home, TV, exercise equipment, car, etc. where the creditor could repossess these items in the event of non- payment. This includes credit cards, hospital bills and personal loans.
Is Debt Settlement The Correct Choice for Me?
Our specialists can help you determine if you are a candidate for this process.
What happens if I miss a payment to my checking account?
If something unforeseen occurs, and you feel strapped, it merely extends the process. However, our specialists are experienced in helping you determine a monthly amount that will realistically work for you within your existing income and help you deal with unexpected cash crises.
Can I deposit more money into my checking account?
Sure, that just accelerates the process to work faster and better.
Isn't debt settlement the same as debt consolidation or consumer credit counseling?
No. With credit counseling, you must pay back all of your debt plus interest. While they will reduce the interest, you still pay interest. With consumer credit counseling, you have to pay back 100% of what you owe. With debt negotiation, you pay back only a percentage of what you owe.
Are there debts that are excluded in the debt settlement program?
Yes. Typically, debts which are excluded include tax debts, secured debts, alimony, child support, student loans, court restitution orders or criminal fines.
Can you prevent creditors from calling me?
Creditors have a legal right to communicate with you until you indicate you are represented by a debt settlement company or by an attorney. At such time, they are precluded from calling you and should they persist , they would be in violation of the Fair Debt Collection Act(FDCPA).
How do I get started?
Just call 1-877-860 – SETTLE (7388)
Power Solution does not provide legal, tax or investment advice. If you need legal advice, legal expertise or court filings, you must seek the advice of a licensed attorney. |
