 |
 |
|
| |
Making Collection Settlement Offers
Once you have saved up enough funds for a debt settlement, Credit Answers can begin to settle your accounts. We generally will settle one account at a time unless you have a lump sum available. Your
collection settlement offer coach will work with you to determine which accounts should be settled first.
We Pick An Account To Settle Based On The Following Criteria:
Severity of collection efforts.
Balance of account.
How much you have saved up to settle an account.
How low a certain creditor is willing to go.
Your Account Is Turned Over To A Collection Settlement Negotiator
A Credit Answers collection settlement negotiator will get firm offers from a creditor agreeing to settle the account and stop collection efforts.
You will be notified by the collection settlement negotiator of the offered amount and you can either accept, reject or make a counter offer.
You may be asked to provide a detailed hardship letter describing your current circumstances.
You Submit Funds Based Upon The Agreed Settlement Amount
Funds go directly to creditor from client
Credit Answers will provide you written documentation that the account is settled.
The creditor will usually agree to update the credit reporting agencies that the account is "settled in full" and send you a confirmation letter
Settling An Account
Credit Answers will work with you to determine which of your accounts to settle and when to settle these accounts with your creditors.
Credit Score Education
Your credit score is used by anyone loaning you money. Credit card companies, home equity lenders, auto loan lenders and finance companies all use a model created by Fair,
Isaac and Co. (FICO), who pioneered credit scoring 40 years ago. FICO serves as a snapshot of your credit history. Having a low credit score can raise the price of your loan
and a very low score can mean denial of your loan completely. Credit Answers will help you understand the ins-and-outs of your credit score along the path to your financial
freedom.
Charge-off Accounts
A "charge-off" is the point where your creditor is required to write the debt off their books. This typically takes place once the account has been delinquent for 180 days. The
lender is expressing that they don't expect to collect the debt and are not willing to claim it as an asset of the company any longer.
Tax Consequences Of Debt Settlement
Financial institutions are generally required to provide a Form 1099-C in the event that a forgiven debt amount exceeds $600.00. Please understand that if you receive a Form
1099-C showing income in the form of canceled debt, this does not necessarily mean that you owe taxes on the forgiven portion of the debt. In most cases clients can legally and
ethically exclude forgiven debt from their income through the "insolvency exclusion" provided by the IRS code.
Collection Settlement Offers
Believe it or not, bad credit can actually help a debt negotation expert in negotiating better settlements. Creditors are generally more willing to negotiate when they see that most of your accounts
are delinquent and they would gain very little if they sue you or force you to file for bankruptcy.
|
|
|
|
|
Get Debt Relief Now!
For a free consultation call 1-800-297-6417 or start by filling in the form below and one of our specialists will contact you. We are here to help you 24 hours a day.
|
|
 |
|
|
