Debt Negotiation  and Debt Settlement Disclosures

Ø We cannot guarantee that the creditors will stop calling the client even though the client will be represented by an attorney.

Ø There is a possibility that the client will get sued. This could result in judgments, wage garnishments, liens, levies, arbitration filings or other forms of collection.

Ø We cannot begin negotiations until there is enough money accumulated in the client’s savings account and the accounts are delinquent at least six months. The Creditors may raise their interest rates and accrue late fees, penalties and interest until their debt is settled. We will NOT be making monthly payments on the client’s accounts unless we determine that a monthly payment is in the best interest of the client.

Ø The program will harm the client’s credit rating as the creditors could report late or no payments, charge offs or collection activity. When a debt is settled a derogatory “settled for less than the full amount,” “settled not as agreed,” or “paid not as agreed” could appear on the client’s credit report. These negative marks could stay on the client’s credit report for up to 7 years.

Ø We cannot guarantee that all the client’s accounts will be settled. There could be situations where a payment arrangement could be set up with a creditor or a creditor will not take anything less than 100%.

Ø The client may be liable for state or federal taxes on the amount of money that is saved for each account that is settled. Any saved amount over $600. is reported to the IRS as income and the client might have to pay tax on that money.

Ø We are NOT attempting to get the client’s debts reduced as much as possible. Debt settlement is for clients who WANT to pay something toward their bills. On the average, we can get debts down to about 50%. If a client wants his or her debts reduced as much as possible, there are other alternatives, such as Bankruptcy or Asset Protection.