W hat is Debt Settlement and how does it work? Author – Marc Weiner Our expert team of attorneys and negotiators work directly with your creditors on your behalf to negotiate settlements for less than the full amount owed. Our Debt Settlement program is a hardship based program designed for the consumer who has a legitimate financial hardship and is looking for a legal and ethical way to take care of their debts without filing for bankruptcy. Our goal is to provide our clients with an affordable program to get back on their feet financially. With our free financial analysis, a practical monthly payment can be achieved based on your current financial situation and personal goals. With your budget analysis, we can determine how many months you will be part of the program to affordably eliminate your debt down to a Zero balance. The end result is that you will end up paying back considerably less than what you owe and you will be out of debt in a fraction of the time it would take you if you continued making minimum payments to your creditors. Q: W ho are our clients? A: Our clients are individuals who have decided that they want to reduce their debts to a zero balance. First, you need to make sure that you're 100% confident in your decision to settle your debts, you will have responsibilities. Our clients found it difficult to get ahead financially and at times could not keep up with their monthly expenses. There are indications that drive most clients to contact our office: health problems, sleeplessness, or stress due to mounting bills; inability to start new credit accounts; bounced checks or continually overdrawn bank accounts; regularly withdrawing cash advances from a credit card to pay minimum payments on other cards; all cards are nearing maximum balances; minimal or non-existent savings; utilizing credit for household purchases, groceries or utilities. Obviously, harassment from debt collectors should be an immediate signal that there’s a problem. If you have no idea as to your actual balances because you've been avoiding the statements, it’s time to speak with a representative at The Attorney Network. Q: How much does your debt settlement program cost? A: We pride ourselves by offering consumers one of the lowest fees in the industry for the Attorney Serviced debt relief program. There are several programs to choose from depending on your financial condition and your personal desires. There is a fee for negotiating the enrolled accounts for debt reduction services and they are included in your monthly payment. The Attorney Network does not charge a fee to discuss the debt reduction programs. Our debt consultation is absolutely free and we will gladly explain other options that are available to you. Our company representative will answer any questions or concerns and there is no charge for the qualifying or budget building process. Understand that everyone’s situation is unique therefore we will tailor your plan to meet your individual needs and work comfortably within your budget. Now is the time to take that first step towards creating a debt free future for you and your family!
Q. If I enroll in your debt settlement program, will my credit score be affected? A: Your credit score is likely to drop during any debt settlement program. However, during your debt settlement program, your total balances are being lowered over time as they are settled in full: a great start to recovery. We feel that with heavy financial burdens and a struggling economy, taking a step back in order to move two steps forward is worth the temporary effect your credit score will experience. Any way you look at it, the effects of Debt Settlement on your credit will certainly be less damaging than the 10-year derogatory mark made by bankruptcy. When you are “Maxed Out�, and unable to keep up with minimum payments, your credit score may be negatively affected; resulting in the denial of additional credit. When you are late with a creditor that is reporting to the credit history, your credit score may be negatively affected. Q: W ill I still pay my creditors directly while in the program? A: Once a client, you will no longer pay your creditors that are enrolled into the settlement program directly. All of the debts you have placed with The Attorney Network for negotiations are organized into one affordable monthly payment used to pay your creditor a reduced settlement. You may choose to leave a creditor out of your debt reduction program, although we do not encourage you to accumulate additional debts while negotiations are in progress. Q: W hat types of debt can be handled by the company? A: As a general rule, any type of unsecured debt can be successfully negotiated. Any unsecured debts meaning credit cards, department store debts, medical bills, personal loans, old utility bills, repossessed car debts, charge offs, collection accounts and judgments. Q: How fast will I see results? A: The time to complete the debt settlement program varies from case to case and is based upon how much money you are able to set aside each month to eliminate the debt of your enrolled accounts. Because you begin to save month one, essentially you could have your first settlement within the first 90 days. Once enrolled, we will mail you a complete Welcome Package. This kit will contain everything you need for the successful completion of the program. We will walk you through the entire program step by step, and negotiate settlements with your creditors on your behalf. Enrollment begins after your first monthly payment. We will then begin the process of contacting your eligible creditors as strategically necessary. Since you will begin to save your very first month, these amounts accrue in your settlement savings fund directly for the benefit of settlement negotiation. We will discuss every settlement offer with you and advise you on each procedure as it presents itself. You will also be provided with access codes to review our progress via internet. Progress can also be relayed over the telephone or mail. It is important that you leave all communications with your creditors to us. If you have any questions or concerns during the program, you can immediately call your representative who will be happy to answer any questions you have. Our customer service department can also be contacted at any time: customerservice@theattorneynetwork.org
Q: W ill I continue to get calls and correspondence from my creditors? A: Once you are accepted into our Debt Settlement program you will direct all correspondence to our Debt Settlement team. Recent government legislation intended to protect consumers from unfair harassment (the Fair Debt Collections Practices Act), greatly limits collection agencies’ contact with consumers. Depending upon the state, there are regulations specifying when and how often collection agents can call, and, if the agency’s informed in writing that the borrower no longer wishes to be bothered, they’ll be legally restrained from any attempts. Furthermore, once the borrower begins working with debt relief companies, the debt collector will be forced to submit all correspondence to the settlement professional. FDCPA regulations force collection agencies to speak with whoever holds power of attorney within debt negotiations. Keep in mind that there is no law that prevents creditors from sending written correspondence to you These Settlement letters and any other letter of concern should be forwarded to our Customer Service Department. Q: Are there any taxes I will incur? A: Any creditor that forgives or writes off $600 or more of a debt's principal (the amount not attributable to interest or fees) might send you and the IRS a Form 1099-C at the end of the tax year. These forms are for the report of income, which means that when you file your tax return for the tax year in which your debt was settled or written off, the IRS will make sure that you report the amount on the Form 1099-C as income. There are a few exceptions stated in the Internal Revenue Code. For example, if the financial institution issues a Form 1099-C, you do not have to report the income on your tax return if the cancellation or write off of the debt is intended as a gift, or you were insolvent before the creditor agreed to settle or write off the debt. Insolvency means that your debts exceed the value of your assets. To figure out whether or not you were insolvent, you will have to total up your assets and your debts, including the debt that was settled or written off. If you conclude that your debts exceed the value of your assets, include IRS Form 982 with your tax return. For more information or consultation, go to www.theattorneynetwork.org