Frequently Asked Questions



Is this the same as debt settlement?
No, DEBT RESOLUTION is much better than “debt settlement.” The law firm will not be “negotiating” with your creditors to see if they may be willing to accept less than the amount that you owe. The firm will be filing the necessary paperwork as a complaint with your creditors which will lower your unsecured debt to 40% of the current total —without negotiation.

Should I keep at least one credit card account open?
You could, but why would you? Many of the basic functions that credit cards “help” consumers with (rental cars, hotel reservations, etc.) can be done using a debit card instead. Why keep the credit card that is costing you huge amounts in interest every month, and often times an annual fee as well. Certainly, which creditors you choose to use the DEBT RESOLUTION program against is ultimately your decision, but we have counseled many clients against keeping an existing credit card account with a balance owed open.

How do I calculate my monthly payment?
The beauty of the DEBT RESOLUTION program is that it obviously reduces your debt by 60% and stops the outrageous interest from taking up most, if not all of your monthly payments. In order to calculate your new monthly payment, first take the total amount of unsecured debt (from “Attachment A”), then divide that number by the monthly payment that fits your personal budget. You will then come up with the number of payments until the debt is reduced to zero. Hopefully, depending upon the amount remaining after the DEBT RESOLUTION, your total debt will be paid off within 24 months.

Here is one example: client “A” has a total of $100,000 in unsecured debt that they want to put through the DEBT RESOLUTION program. They take that number and multiply it by .4 (point four) which is 40% of their original total. They are then left with $40,000 as the amount they will pay directly into the law firm trust account. Their monthly budget will allow for a payment of $1,666 every month to pay off their remaining debt. When they divide $40,000/$1,666 they get a total number of 24 payments. Their goal was to pay off this debt in three years thanks to the DEBT RESOLUTION program, they can now do even better than that! They have reduced their monthly payment from over $4,000 per month to only $1,666 and will now have this debt eliminated in two years. Before DEBT RESOLUTION, at the rate they were paying down their debt, they would have been making those “minimum payments” for over 20 years!

What if one particular month I can’t make my monthly payment?

If an extenuating circumstance comes up and you are unable to make your payment some month in the future, simply pick up the phone and contact the firm. They certainly understand that circumstances arise (stuff happens) and are willing to work with you. Please call so they can note your account accordingly.

Is there a benefit to paying off the remaining debt in full as soon as possible?

You are on the road to “credit recovery” and certainly the sooner this unsecured debt is totally gone, the sooner you can minimize your debt-to-income ratio which will improve your credit dramatically. Some clients choose to pay off the debt remaining after the DEBT RESOLUTION in one payment. Others, when they get access to a lump sum of money, choose to pay-off the debt early. Again, the sooner this debt is completely gone, the sooner the shackles this debt has put on your life are gone, and the sooner your credit will recover.

How will this debt resolution affect my credit rating?

We are glad you are keeping your credit rating in mind and it is our goal to help you maximize your credit rating over time. As you begin the program, you might experience a dip in your credit scores if your creditors choose to report lates to the bureaus. On the other hand, if you are currently experiencing lates, collections etc., there should be no additional dip in your credit score. Certainly reducing your unsecured debt by 60% will have a positive impact on your credit because of the positive impact on your debt-to-income ratio. That effect will be immediate! Also, the firm will stipulate in your behalf that the creditor cannot put future negative marks on your credit file. If they do, we are here to help absolve them from your record.

Will the program help me qualify for an FHA loan?

Good news, yes it will. When you have unpaid debt that is late or in collections etc, you will not qualify for an FHA loan. With our DEBT RESOLUTION, program once we have resolved your debt, you will have all your debt sharing zero balance; therefore, after only 12 months you will qualify for a FHA loan (as long as you meet the rest of the FHA qualifications). The best news is. with a FHA loan, you only need 3% down payment.

Will I be required to pay any additional fees, other than my initial start-up cost?

No you will not incur additional fees in order to reduce your unsecured debt by 60%. You have already paid your initial fee and that fee covers all the set-up and filing with your creditors.

Will this debt resolution affect my ability to negotiate on my mortgage?

Because you will effectively be reducing your unsecured debt by 60% you will immediately improve your debt-to-income ratio. This may in fact be a huge help in negotiating not only on your current mortgage, but also new mortgages.

Why is this a better alternative to bankruptcy?

First of all, the devastating impact that bankruptcy has on your personal credit has been well documented. This dramatically negative effect will last 7–10 years! The DEBT RESOLUTION program does not have the associated stigma and devastating impact on your credit. Also, with the new bankruptcy laws which went into affect a few years ago, it is very difficult for most people to qualify for a Chapter 7 bankruptcy. If someone does not get the Chapter 7, they are paying back ALL of their debt including costly attorney trustee fees on a payment schedule through a Chapter 13. Wouldn’t you rather only pay back a portion without all the negatives that bankruptcy brings?

Will I receive a 1099 from my creditor or owe the IRS more money because of my debt resolution?

Absolutely not! There is no taxable consequence from the DEBT RESOLUTION, unlike most other debt settlement programs out there today which you may have heard advertised.

What else can I do to start improving my credit?

Certainly once the DEBT RESOLUTION program has reduced your unsecured debt by 60%, you want to make sure and make all your payments on time. We have seen phenomenal results with clients who first use the DEBT RESOLUTION program, next pay their bills on time so that no future “late pays” appear on their credit, and then begin a CREDIT IMPROVEMENT program which includes disputing all erroneous information on their credit report. We consider this to be the next natural step for you in working towards an 800 FICO score. It is our goal to help you achieve the highest possible FICO score in order to reduce the amount of money you have to pay every month, not only to creditors, but to many other companies.

What do I need to do in order to refer people I know that need the same help I received?

If you have signed up for the PLATINUM REFERRAL PROGRAM, you have the ability to earn hundreds of dollars by referring other people you know to our service. The simplest way to do this is to use our affiliate website. You simply share your personal story of how we were able to reduce your unsecured debt by 60% and they will naturally want to receive the same phenomenal benefit that you did. At that point, all you need to do is refer them to your website, they learn all about the program and then enter their contact information. Someone from our office will then contact them, answer any questions they have, and get them started on the same wonderful path of DEBT RESOLUTION that you are on today. Because they came through your website, you will get the referral credit and receive $200 for the referral. We have many clients who love this PLATINUM REFERRAL PROGRAM and have as their monthly goal to both share with people they know who definitely need the help, and earn enough in referral income to pay their own DEBT RESOLUTION payment to the firm!