FAQ
Q: If I receive a sum of money, can I resolve all accounts before original completion date?
A: Yes you can! If you are able to come up with an amount of money that would be required to finish the program early, our program allows you to as long as the payoff includes all originally agreed fees to. Understand that the process still take time, and paying the resolution amount may shorten the program length, but we reserve the right to take the entire 18 months to resolve the debts.
Q: Can I continue to use a credit card, store card, gas card, or any other unsecured debt once I am in the program.
A: No, clients may not continue use of any debt that is included into the program. Client will be terminated from the process immediately if fount to have charged or continued to have charged on any credit cad, personal loan or other debt entered into the process on or after entering the debt resolution process.
Q: Is there a Guarantee that the debt will be resolved for the amount discussed?
A: Yes and no. Very little in life is truly guaranteed, and the definition of negotiation is such that there cannot be a guarantee. We do guarantee that we will perform the work as agreed and will be making payments to your creditors. And, so far, we have a track record of tremendous success. This simply means if we’ve been successful with everyone before you, the odds are pretty good that we will be successful with you. Be cautious of anyone or any company who gives you a “Guarantee.”
Q: What happens when the Credit Card Companies/Debt Collectors start calling me?
A: When the debt collectors call, you will be provided with a simple statement to say to them. You will not answer questions or provide information to them. You will need to document the call. During this process you have rights that are protected under Federal Law and you, with the support of our team and attorneys, rights that are routinely violated by the debt collectors.
Q: Do I have to seek Debt Resolution on all of my cards?
A: No, you can pick and choose the ones that you want to put into the debt Resolution process. However, once a card has been placed inside the service the credit card company will cancel that card and close the account. If you have multiple cards from the same company/bank and you decide to seek relief on one, they will most likely cancel the others.
Q: My credit card is held by the bank in which I have my checking account / car loan / mortgage. Is it safe to include that card in this process?
A: If there is a credit card that you want to put in this debt resolution process and it is held by the same bank with which you have a mortgage or a car loan, it may be best to make sure that the credit card is not cross collateralized with any of these other loans from that banking institution. Additionally, if you have a checking account (no mortgage or car loan) with the same bank that holds a credit card you wish to include in the process, it would be best closing that checking account and moving it to another bank; this is done just as a precaution.
Q: What percentages of clients fall out of the program?
A. With Client Retention as our focus, our percentage of fall-outs is among the lowest in the industry. While most companies average 50% fall-outs, our latest report in the 4th quarter of 2008 had only 11.6% fallout.
Q: What happens if a client is enrolled and a creditor sues?
A: We have an attorney on retainer, and if a creditor tries to go a legal status before we are able to change the terms, then we will review the account and advise on the best plan of action on a “pro per” basis, and will help to mediate a resolution to keep it from a judgment.
Q: Is this Resolution Legal and Ethical?
A: Yes, absolutely. This is a question that most people always have when analyzing this type of program. We provide you with information as to the legality of what we do, and in terms of morality it is the Credit Card companies that are immoral. When you understand that they create money out of thin air that they loan to you and then expect you to pay 30% interest on, you will learn that they are the immoral ones. The people we work with all over the country are people who are most likely just like you, people who paid their bills. You cannot get thirty, fifty or one hundred thousand dollars in credit cards with out paying all of your bills and having good credit. But sometimes bad things happens, life happens, there is a loss of income, someone gets hurt, a family member dies, or a business fails, and you simply cannot pay what you used to pay. When such hard times occur, more often than not, banks and Credit Card companies will not work you. Credit Card companies constantly monitor your credit report and when they see that you have begun to max out your credit lines, the will begin to raise your rates to astronomical levels. Why do they do it? It is because they can. It is simple; they get you in debt and keep you in debt, because it makes them money. Unfortunately, all consumer protection laws in regards to bank usury have been eliminated, and as such the bank can charge you what ever they want and they do. We want to help you get out of debt, and more importantly teach you to stay out of debt and not find yourself in the same situation ever again. We encourage you to watch the documentary “Secret History of Credit Cards” featured on www.pbs.org.
Q: What are the tax implications of the Debt Resolution Program?
A: Client is advised to consult a tax advisor to determine whether client’s individual circumstances may permit client to exclude any such discharge of indebtedness income from client’s reportable income due to insolvency. For more information on tax ramifications personally regarding a client, client should consult a CPA or Tax Attorney and/or refer to the IRS website www.ustreas.irs.gov IRS Publication 908 – “Bankruptcy Tax Guide” and IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness available on the IRS Website.
Q: My ex-spouse is supposed to be paying these credit card bills according to the divorce decree. But he/she is not paying and the collectors are calling me. Am I liable for his/her non-payment?
A: You certainly might be. If your name was on the credit card, then the debt collectors will certainly be coming after you. The fact that your ex-spouse was supposed to pay and hasn’t is immaterial to the debt collectors. Precisely because your ex-spouse isn’t paying is why they are harassing you. The credit card companies and the debt collectors are not bound by the Family Court decision assigning the debt to your ex-spouse. If your name was on the card, you are still responsible. We can be of help to you.
Q: Does it matter that I am in collections?
A: No, in fact many times the process to accomplish debt relief on your debt moves quicker if you are already in collections. Such strategies still use elements of Contract Law, and may seek to make such accounts uncollectible, or work out a resolution through negotiation.
Q: I am already in a debt consolidation / credit counseling / debt settlement program. Can I leave that program and work with your program?
A: Yes. You simply have to write a letter to the company informing them that you will no longer require their services. We suggest you send the letter certified mail return receipt requested. If you are in a Credit Consumer Counseling program and have been enrolled for more than three months, switching to our Debt Resolution Program may not be the best transition.
Q: Wouldn’t Bankruptcy be a better way to go?
A: Possibly, depending on your circumstances. If you have little or no income and little or no assets, bankruptcy might be for you. The new bankruptcy laws make it almost impossible to put credit card debt into a bankruptcy filing. Bankruptcy is a huge step with implications that will last for many years, so check it out with caution. We can absolutely state it is a less expensive way to go. We will give you some information for you to consider, but we do not give legal advice and if you are considering bankruptcy (Chapter 7) you should see a bankruptcy attorney.
Q: I have my own credit cards and my spouse has cards in their name, can they be included in the service for the same fee?
A: Yes. The fee structure is based on household debt, not individual debt. So a husband and wife can include both of their cards in the process for the same fee. And in the opposite, a spouse may elect not to include his/her cards in the process.
Q: How long has this program been in place?
A: This is not a new program. Our track record combines many years of experience and thousands of cases successfully resolved and litigated for our clients. We have worked with thousands of accounts, to the tune of millions of dollars. Our development of the RS1 Debt Resolution Product as an 18 month structure, allows for more people to afford the program by being able to make payments. Simply put, what we have achieved for others, we will achieve for you.
