Debt Negotiation Program
Debt Negotiation is an aggressive approach to debt reduction and is the alternative to filing bankruptcy. A Debt Negotiation agency negotiates with the creditors to settle your debt for a lower amount than owed. Once the debt has been settled, the creditor will send a letter stating the debt has been satisfied. The creditors will also notify the credit bureaus that the account is “Paid”, “Settled”, or Settled for less than the full amount”.
Debt Negotiation is a way to get out of debt in the shortest amount of time and for the least amount of money, without filing for bankruptcy. Creditors will usually settle for less than owed. Although the bankruptcy laws have recently changed the creditors know that the option to file bankruptcy still exist. They would rather settle the account in order to get as much money as they can. With Debt Negotiation, Financial
Freedom of America averages 43% settlements, which would result is a 50-60% savings
of the account balances.
*This
statement is an example of past performance and is not intended to be a guarantee
of any future settlement results.
**Savings
estimates do not include FFA fees.
Debt Negotiation can be harmful to a debtor’s credit-rating while they are in the process of settling their debt. Creditors won’t agree to settle on an account that is in current status. The debtor’s credit report will reflect that they are behind in payments thus having a negative impact on your bureau report, until the debts are settled.
How do you qualify for the Debt Negotiation program? You must have a minimum “unsecured” total debt of $7,500.00.
Unsecured Debt includes:
- Credit Card Debt
- Judgments and Liens
- Unsecured Lines of Credit
- Collection Agencies
- Hospital and Medical Bills
- Department Store Cards
- Creditor Law Suits
- Repossessed Vehicle Loans
We do not accept any Federal debt, student loans, income tax debt, or any secured loans.
Debt
Consolidation Program
Our Debt Consolidation program allows you to include unsecured debt such as credit cards, department store cards, personal loans, past due medical bills, past due utility bills and IRS bills. The Consolidation team will negotiate on your behalf for a lower interest rate. All of your bills will be consolidated into one monthly payment, which will be disbursed to each of your creditors. Your accounts will remain in current status. Regardless of your financial status, everyone can benefit from a consolidation program’s ability to lower your interest rates and in some cases eliminate the interest all together. Consolidation can help you avoid bankruptcy, improve your credit, and stop harassing calls from your creditors.
Other benefits from the debt consolidation plan include:
- No hidden fees
- Pay off debt quickly
- Improve credit ratings
- Dramatically lower interest rates
- No waiting period to get started
- No minimum financial requirements
- We can assist you with a budget you can live with
- Eliminate collection calls and creditor harassment
Bankruptcy
While Bankruptcy is still an option, most clients are not interested in filing. This is largely due to the new Bankruptcy Laws as of October 17, 2005. Where in the past you could file Chapter 7 and in approx 4 months the debt would be eliminated, now you must take an approved Financial Counseling Course within 6 months prior to filing.
The purpose of the new Bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased. Theses people must file Chapter 13.
Debtors considering Bankruptcy must provide to the trustee a copy of a tax return or transcript of a tax return, for the period for which the return was due. You should seek an attorney within your home state as Bankruptcy Laws vary from state to state.
Another major change to the Bankruptcy Laws involve certain hurdles the consumer must clear before filing Bankruptcy, no matter what the chapter.
Sources: http://www.bankruptcyaction.com/bankreform.htm