FREQUENTLY ASKED QUESTIONS
- Credit Cards
- Personal Loans
- Lines of Credit
- Medical Bills
- Business Debts
- Certain Student Loans
*Unsecured debt refers to any debt that is not backed by collateral, such as a home or car. It is less risky for consumers because they do not risk losing assets if they fail to repay the debt. However, if you become delinquent on your unsecured debts, your creditors may take legal action against you, although they cannot repossess your property or foreclose on your home.
You won’t be charged any fees until you approve the resolution agreement and your debts are settled. You won’t have to pay any sign-up or cancellation fees, and you’re not under any obligation to proceed. After the debts have been settled, the average client generally pays a fee of 15-25% of the total debt enrolled as part of their monthly payment. If we’re unable to settle your accounts, you won’t be charged anything. It’s straightforward.
“A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as income under the ‘insolvency’ exclusion. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent.” – IRS.gov
It’s best to speak with a CPA or tax professional for help with this.
Debt relief, on the other hand, involves negotiating outstanding debts through a combination of debt forgiveness and a manageable payment plan to help you become debt-free. Our program can significantly reduce the amount you owe, lower your monthly payment, and have your enrolled debt paid off within 24-48 months. While it may have a detrimental effect on your credit score, it is important to note that bankruptcies can legally be reported for a longer period of time.