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FAQ

Some Frequently Asked Questions

What does a debt resolution program do?

Debt resolution, debt settlement, negotiated debt settlement, or debt negotiation, is a process where a company like America’s Debt Solution negotiates or settles unsecured debts to a creditor or debt collector.

These are our goals when we’re negotiating with your creditors:

  1. to reduce the amount you owe and
  2. to “settle” the debt faster than you would pay it off on your own.

Despite your reservations that this may be too good to be true, the debt resolution process is common for creditors. Creditors often settle debt for less than the amount owed. They know clients experiencing tough financial situations may never pay back the debt or may declare bankruptcy, so it is better for the creditor to settle the debt for less rather than receiving no money at all.

Who qualifies for a debt resolution program?

Debt resolution is generally for people with $10,000 or more in unsecured debt who want to reduce their total amount of debt without declaring bankruptcy. If you’re facing financial hardship and have more debt than you can pay off in the next two to four years, debt resolution can be a solid option for getting yourself back on track financially.

What type of debt do you work with?

We only work with debts without collateral attached to them, also known as unsecured debts. Unsecured debts includes everything from credit cards to store cards and medical bills. Debts with collateral attached –like mortgages, car loans, or federal student loans– are not eligible for debt resolution. Get in touch with us if you need to clarify which of your debts are eligible.

How does this affect my credit?

Debt negotiation will negatively affect your credit for a short period of time and it can be improved as you complete the program and you become debt free. The effects are typically not as severe as bankruptcy. If you are already behind on your bills, your credit score will already be lower so the effects of our program may not be as severe as you think.

Who qualifies for a debt resolution program?

Debt resolution is generally for people with $10,000 or more in unsecured debt who want to reduce their total amount of debt without declaring bankruptcy. If you’re facing financial hardship and have more debt than you can pay off in the next two to four years, debt resolution can be a solid option for getting yourself back on track financially.

When will I pay my debts off?

While it varies from person to person, the average debt resolution program lasts two to four years. How long your program takes depends on a few factors, including how much money you deposit in your account every month. You can start paying off debts when you’ve saved enough money to cover the amount negotiated in the settlement. The more money you can add to your Dedicated Savings Account, the quicker your debts can be settled.

What do I do in the event my creditors take legal action?

Legal action by creditors could occur. If you do receive a legal notice, please send it to our service team so they can prioritize this creditor or lender and work to settle it first.

Rather than taking legal action, a more common step creditors take is selling your debt to third-party collection agencies and/or law firms. When something like this happens, this particular creditor or lender might get moved to a priority list.

If a lawsuit does get filed against you, the settlement negotiators can attempt to resolve that creditor or lender’s account by setting up a specific payment plan. They also may be able to refer you for further help if needed.

Note: We are not a law firm and can’t offer any legal advice.

How does debt negotiation differ from bankruptcy?

Bankruptcy is an option that is generally treated as a last resort and if you need to protect appreciating assets. It will remain on your credit report for as long as 10 years & you can be denied employment, state licenses, insurance, as well as tenancy of an apartment. Most importantly, you can be denied virtually any type of credit with a bankruptcy on your report for several years. In addition, since the bankruptcy laws have changed recently, it is even more difficult to qualify for Chapter 7, the method of liquidating assets to eliminate your debt. You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition. Under Chapter 13 bankruptcy, your debt payments are simply restructured meaning you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy. Debt negotiation is an alternative to bankruptcy.

Debt resolution, debt settlement, negotiated debt settlement, or debt negotiation, is a process where a company like America’s Debt Solution negotiates or settles unsecured debts to a creditor or debt collector.

These are our goals when we’re negotiating with your creditors:

  1. to reduce the amount you owe and
  2. to “settle” the debt faster than you would pay it off on your own.

Despite your reservations that this may be too good to be true, the debt resolution process is common for creditors. Creditors often settle debt for less than the amount owed. They know clients experiencing tough financial situations may never pay back the debt or may declare bankruptcy, so it is better for the creditor to settle the debt for less rather than receiving no money at all.

Who qualifies for a debt resolution program?

Debt resolution is generally for people with $10,000 or more in unsecured debt who want to reduce their total amount of debt without declaring bankruptcy. If you’re facing financial hardship and have more debt than you can pay off in the next two to four years, debt resolution can be a solid option for getting yourself back on track financially.