Major Debt

We negotiate through debt settlement programs with your creditors. Each negotiation comes in a mutual agreement for the resolution of your unsecured debts. These debts are itemized as part of the enrollment agreement and referred to as "Enrolled Debts." There are no guaranteed or predicted savings results.

Saving sufficient funds allows us to negotiate your debt resolutions. You also must adhere to the regular scheduling of deposits. These funds will be deposited into a separate FDIC-insured bank account under your name. Under no circumstances we will have custody of the funds you set aside.

The savings program will be detailed in your enrollment agreement. It will be prepared for you. It will include the summaries of the minimum monthly savings amount and the estimated period needed to settle your debts. Keep in mind that the actual resolution amounts and the period required to settle debts varies based on your creditor behavior and the ability to keep your deposit schedule.

We cannot force creditors to negotiate with debt settlement service providers or accept an offered settlement. Communications with creditors are handled on a case-to-case basis and you will be receiving updates regularly. Your creditors may continue to pursue collection efforts on delinquent accounts while you are enrolled in a debt settlement program such as phone calls, letters, sending delinquent notices, or even a lawsuit. You will be provided with pre-paid legal services in case of litigation.

Our debt settlement program will operate long-term. The time needed to produce a settlement of debts depends on the following factors:

• Financial hardship
• Age and balance of accounts you owe
• Balance available to pay to creditors for settlement
• The willingness of creditors to enter into a settlement.

No guarantee could be given but the more money you are able to save, the sooner we will be able to start the negotiation.

The fees paid towards our services cannot be used to settle debts. The fees you pay us are meant to recompense our efforts and they will only be refunded if they are not found to have been earned indicated in the Client Agreement. Those fees are not set aside in a special account to pay for debt settlements.

People who qualify for our program are unable to make the minimum monthly payments required by their creditors to pay off their debts consistently. Delinquencies will be reported to consumer reporting agencies as late, delinquent, charged-off, or past-due sums if you do not make the minimum quarterly payments on your debts.

Your creditor may also increase your account's interest rate and add other expenses such as late fees or over-limit fees. Your account amount may continue to grow until it is charged off as your creditor adds accrued interest, fines, and penalties, and if discussions fail, you may be required to pay the entire debt.

Suppose there is a success in negotiating a less than full balance resolution. In that case, your creditor may record the account to the credit reporting agencies as "settled for less than the full amount."

Your creditor may report a savings of $600 or more (meaning at least $600 less than what you owe at the time of settlement) to the IRS as a Discharge of Indebtedness income once your creditor agrees to settle a debt.

Consult your tax advisor to see if your specific circumstances necessitate including any Discharge of Indebtedness Income in your taxable income or if you qualify for an insolvency exclusion.