One of the most commonly asked question we get here at Debt Relief NW, Inc. is…

“When or at what point is bankruptcy my best option?”

For over 10 years now, we have been helping people avoid bankruptcy through debt settlement.

While debt settlement is not the answer to everyone’s financial problems, many times the traumatic and gut wrenching process of bankruptcy can be avoided through debt settlement.

When we interview someone to determine the best course of action based on  their specific circumstances, there are basically 3 options for most people:

Debt Management

The credit industry figured out that if they only charge you a very small monthly minimum payment coupled with a large interest rate, late fees, over-the-limit fees and an annual account fee, they (the credit card company) would make 3-4 times the original amount they let you borrow!

The goal of the credit card industry IS NOT for you to pay off your debt! 

The goal is for you to be paying small minimum payments for many, many years!

In a debt management program (sometimes still referred to as “credit counseling”), a person who is barely making the minimum payments on their credit cards and other unsecured debts (store cards, personal lines of credit, pay day loans, etc.) will enroll all of those debt with the debt management company.

They will usually be required to have a payment that is approximately 2.5% of their total indebtedness. For example, let’s say you have several cards and personal accounts that total $25,000.

In a debt management program, your single monthly payment would be approximately $600-$625 per month for approximately 4 years or so.

This is a great way to get your credit accounts under control and have a day in the future when you can finally be DEBT FREE!

But, what if you cannot afford the minimum payment required by a debt management company?

Debt Settlement Program

A prospect for a Debt Settlement Program usually fits into one or more of the following scenarios:

• They have too much debt and cannot keep up with the minimum payments.
• Some or all of their accounts have gone (or are about to go) to a collection agency.
• They cannot afford the payment required of a Debt Management Program.
• They want to avoid bankruptcy if at all possible.

In a Debt Settlement Program, your current creditors WILL NOT be receiving normal monthly payments.

Instead, your accounts that have become delinquent will be/or have been charged off and sent to a collection agency for collection.

After a thorough financial consultation, the debt settlement counselor will evaluate what you can reasonably afford to set aside monthly into a Client Reserve Account.  As this account grows, the debt settlement company will be contacting you creditors and/or collection agencies to negotiate settlements.

Depending on several factors, settlements may be negotiated with a one-time payment from the funds accumulated in your reserve account or a term-settlement may be negotiated whereby the collector agrees to a reduced settlement paid out over a specific period of time.

Once the settlement agreement has been completed, the collection agency or creditor will contact each of the 3 major credit reporting agencies (Experian, Equifax and Transunion) to report that the account has been paid-as-agreed.

Over time, as your accounts are settled, you credit score begins to improve.

But what if you cannot afford much more that a small monthly deposit to the reserve account or nothing at all?

This is where Bankruptcy becomes a “tool” to protect you from creditors who choose to:

•     Seek Wage Garnishment
•      Levy a Bank Account
•      Place a Lien on your property

If you are considering bankruptcy, you should consult one or more attorneys who specialize in bankruptcy.

Bankruptcy should not be viewed as a “get out of jail Free Card”, but rather the last and only option when faced with insurmountable debt.

If you have an old credit account that has been placed with a collection agency, you may be able to settle that debt for less than the balance.

How to settle debt with collection agencies

#1 If you are not sure you owe the debt, you have the right to request a DEBT VALIDATION from the debt collector.

According to the Fair Debt Collection Practices Act (FDCPA), every consumer has the right to make the company trying to collect a debt PROVE that you actually owe it.

You must write a letter and it should be something like this:

To whom it may concern:

Although I received a letter dated (date on the letter) from you demanding payment of the above debt, I do not think that I owe it and request that you VALIDATE THE DEBT according to the FDCPA, 15 USC 169g Sec. 809 (b).

Please provide the following:

• Produce copies or the original contract that you say I signed, showing the date and my signature.
  

• Provide a calculation that explains how you have arrived at the balance you say I owe.

• Provide proof that your agency is registered in my state or why you have an exclusion.
  

If you can provide the above documentation, I will need at least 30 days to determine if this information is correct and again, according to the FDCPA, all collection activity must cease.

Looking forward to clearing this matter,

Your signature

Print your name

Date

Send the letter by CERTIFIED MAIL to prove that the collection company received it.

#2 If the debt collector does provide proof that you owe the debt, you should negotiate a settlement for less than the amount owed.

This can be tricky as these collectors are professionally trained to do whatever it takes to get you to pay as much as possible!

#3 If you get a settlement offer, make sure you GET IT IN WRITING!

Regardless of what the debt collector says, they can and MUST provide you with a letter, fax or email of the terms you agreed. DO NOT, I REPEAT, DO NOT authorize any type of payment without the settlement agreement in writing.

Once the payment has cleared, you should get a letter from the collection agency stating that the account has been "settled as agreed".

Your proof of payment (canceled check, bank statement showing a check-by-phone transaction for the amount agreed) along with the SETTLEMENT AGREEMENT, will be enough to prove that you have paid this debt as agreed if it ever surfaces in the future.

If this seems overwhelming or if you have questions, we can help.  Simply give us a call or click on the link below for a FREE debt elimination summary.

When you have so much debt that you are not able to keep up with the minimum payments, your options are limited:

• Debt Management (or credit counseling) Program
• Debt Settlement Plan
• Bankruptcy

When is bankruptcy the best option?

Let me briefly explain how the first two options work:

DEBT MANAGEMENT PROGRAM

A Debt Management Program is a program designed for those who have substantial unsecured debt (mainly credit cards) and realize that even though they are making the required minimum payments, the balances are barely going down!

The average person will take 10-15 years (some experts estimate longer) to repay credit card debt.

And when and if it is repaid, the average consumer will end up paying back 3-4 times the original amount that they borrowed!

Think about that... If you have say, $20,000 of credit card debt and are just barely making the minimum payments, you could end up paying back $60,000 to $80,000!

In a Debt Management Program, you will have:

• One low monthly payment
• Reduced or sometimes even 0% interest rates!
• Waived late fees (usuallyl)
• Eliminated your debt in about 4-5 years, saving thousands of dollars in interest and fees!

What if you cannot afford the typical 2.5% payment required of a Debt Management Program?

If you cannot afford the payment of a Debt Management Program, then you should consider a DEBT SETTLEMENT PROGRAM.

In a Debt Settlement Program, you will have:

• One low monthly payment (determined by your financial situation)
• Debts negotiated at approximately 50% of the balance
• Eliminated your debt in just 3-5 years, depending on an individual's circumstances

What if you cannot afford the reduced monthly payment of a Debt Settlement Program?

If you cannot afford the payment required of a Debt Management Program or a Debt Settlement Program, bankruptcy may be your best option.

There are basically 3 areas to examine in order to deteremine if bankrutpcy is the best option:

• Financial
• Ethical
• Legal

By the time you are considering bankruptcy, you should have already explored a Debt Management Program and a Debt Settlement Program, and determined that you cannot afford either of the reduced monthly payments. You have explored the FINANCIAL aspect of determining when bankruptcy is the best option.

But what about the the ETHICAL aspect of bankruptcy?

In most cases, getting to the point of bankruptcy is not your fault.  Maybe you:

• Lost your job
• Lost a spouse or loved one
• Sufferred a major illness or injury
• Went through a terrible divorce
• Or, many other reason too numerous to list

The point is, most people do not get to the point of bankruptcy from just spending too much.

No matter how you look at it, bankruptcy is basically saying, "I cannot keep my promise to repay my debts." It an tremendously emotional decision, and one that can have lingering effects for years.

Before you seek a bankruptcy attorney's counsel, ask yourself if there is any way you can repay your debts WITHOUT going bankrupt?  Can you:

• Ask for help from friends or family
• Get a second job
• Make cost saving/budget cuts or even create a crisis budget
• Sell some of your "toys" (extra car, boat, RV...)

I am not an attorney, so I am not goint to give any legal advice. To explore the LEGAL aspects of filing bankruptcy and to see if you qualify for either Chapter 7 or Chapter 13 bankruptcy, you need to seek the help of a qualified bankruptcy attorney.

There are many factors to consider when determining if bankruptcy is the best option. We can help you make the best choice with a FREE no obligation consultation with one of our Debt Solutions Specialists.  Click on the link below or simply give us a call at 1-877-492-4109

As strange as it seems, closing credit card accounts will actually hurt your credit score. 

Why does closing credit card accounts hurt your credit score?

They actually penalize you if you close accounts because it now looks as though you have "less established credit" and are more of a risk! It doesn't make logical sense, but that's the credit rating/scoring game we all have to play!

For Example:

Let's say you have 5 credit cards

As far as the main credit reporting agencies (Experion, Eqiufax, Transunion)are concerned, your RISK RATIO looks like this:

In this example, you are a good credit risk, pay on time and therefore should have a good credit score. But, let's say you decided to cancel the Sears, Kohl's and Discover cards since they have a zero balance and you are trying not to charge up too much credit.

Now your RISK RATIO looks like this:

Now you are a greater risk as you are using almost 1/2 of your available credit! Make sense? 

What is the best way to manage your credit score and risk ratio?

It might seem foolish, but from a credit score perspective, the best way to improve your credit score is to "lightly" use several cards."Lightly" means charging less than 10% of the available credit.

Next, you need to PAY OFF THE FULL BALANCE EACH MONTH!

Not sure what your credit score looks like?

Go to www.creditkarma.com to see your score for free.

Want to see what is showing up on your credit report?

You can get a FREE COPY OF YOUR CREDIT REPORT FROM ALL THREE MAJOR AGENCIES once a year!

ARE THERE ERRORS ON YOUR CREDIT REPORT?

You can fix those errors and improve your credit score.  Check out this post --> 3 Tips on How to Repair Your Credit Report.

Have you ever wondered about what is the difference between a chapter 7 and a chapter 13 bankruptcy?  This post will help clear up the confusion!

DO NOT take the information to follow as legal advice!  Before making any decisions, you should consult an experienced, licensed bankruptcy attorney. 

Chapter 7 bankruptcy is a liquidation form of bankruptcy. 

This means all of your non-exempt assets get sold and the proceeds are shared amongst your unsecured creditors. 

However, many of your assets will be classified as "EXEMPT", and will not have to be sold if they fall under the following guidelines: (again, these change all the time, so make sure you consult a licensed bankruptcy attorney!)

Few examples of exempt assets:

How do you value your property?

The rule of thumb is to use garage sale prices, although current events can cause certain items’ value to sky rocket and the Trustee will sell it for what he or she can receive and not what you think it is worth.

It is important to know which debts get discharged in a Chapter 7 bankruptcy and which will remain after filing. 

After the bankruptcy completes (which is usually 4 months if there are no non-exempt assets or a minimum of 10 months if there are non-exempt assets) you receive a discharge.  This means you are no longer responsible for paying those dischargerable debts.

In most cases, a Chapter 7 bankruptcy is more attractive than Chapter 13 because it is much shorter time commitment and you don’t have to give up all future disposable income for 3-5 years. 

But what if you do not qualify for a Chapter 7?

Then you would most likely file for a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy involves paying your creditors back over a period of 3-5 years.  You take your monthly expenses away from your monthly income, what is left over is called disposable income. 

The entirety of that disposable income, a minimum of $100 will get paid to your unsecured creditors. 

At the conclusion of your 3-5 year period, what they have received is all that they get and the rest of the unsecured debt is discharged.  If you pay your creditors back in full prior to the 3 to 5 years finishing, than your case closes since there is no longer any debt to administer.

You only want to file a Chapter 13 bankruptcy if either you can’t use Chapter 7 or a Chapter 13 would give you an advantage.  A Chapter 13 must be used if you make too much money under the means test to qualify for a Chapter 7 bankruptcy or you have filed a Chapter 7 bankruptcy within the last 8 years. 

You gain an advantage from filing a Chapter 13 bankruptcy if you need to catch up on back mortgage payments or you have certain tax or domestic support debts.  There are other reasons to file a chapter 13 and I would strongly recommend consulting a licensed bankruptcy attorney if you are contemplating filing.

One last important difference between these two chapters of bankruptcy is what happens if you want to quit the process. 

A Chapter 13 bankruptcy is a form of voluntary repayment, which you can stop at any point.  There will be no penalty, just all the debts will once again come due and you will have lost the protection of the automatic stay. 

A Chapter 7 bankruptcy is a liquidation form of bankruptcy and once initiated continues until the Trustee is finished.  This is true even if you voluntarily give up your right to a discharge, fail to make a payment, or fail to take the required classes.  You have the right to give up your discharge, but that does not prohibit the Trustee from continuing to administer your estate and sell your non-exempt belongings. 

Bankruptcy should only be filed if you are aware of the risks and benefits.   Most bankruptcy attorneys offer free one hour initial consultations, I’d urge you to call one in your area before deciding which chapter to file.

Are there alternatives to bankruptcy?

Yes.  You may qualify for:

Debt Management or Debt Settlement

Call today for a FREE CONSULTATION.

Written by Noah Bishop of Gresham Family & Bankruptcy Law

Debt collectors practice abusive tactics everyday, but what JPMorgan/Chase did in California got them in serious trouble with the State Attorney General!

CNBC published an article by Jessica Silver-Greenberg in the New York Times about how JPMorgan/Chase had been practicing abusive debt collection practices on thousands of creditors between 2008 and 2011.

JPMorgan/Chase would file thousands of lawsuits each month (469 on one day!) in an effort to clollect debt. They were accused of taking shortcuts such as relying on court documents that had not been reviewed for accuracy.

Anyone who receives a collection letter or summons has the right to have that debt "validated".

In other words, JPMorgan/Chase was not doing this and therefore were charged with "unlawful practices", according to the article. Debt Collectors must obey the law or more specifically the Fair Debt Collection Practices Act (FDCPA) or be subject to criminal charges.

Kamala D. Harris, the Attorney General of California, is quoted in the article that JPMorgan/Chase:

• "took shortcuts like relying on court documents that were not reviewed for accuracy"
• "To maintain this breakneck pace, JPMorgan relied on unlawful practices."
• "...assembled a debt collection mill that abuses the California judicial process"
• "At nearly every stage of the collection process, the bank cut corners in the name of speed, cost savings and their own convenience."

Illegal debt collection practices is nothing new!

We've been helping people repay and/or settle debts for many years and have seen abusive debt collection practices before, but never on this large of scale as the article states! The FDCPA can protect you from such abuse, but you need to KNOW YOUR RIGHTS!

Of all the charges outlined in the article, the worst was what is called "sewer service"!

What is Sewer Service?

In traditional and legal debt collection, the process should go as follows:

• The collector files a CLAIM in your county's court house.

• You are supposed to get a SUMMONS delivered in person.

• You have 20-30 days (depending on your state law) to dispute the debt.

• Since most people either owe the debt or ignore the summons, the creditor/plaintiff is awarded a DEFAULT JUDGMENT.

With the judgment (awarded by default), the creditor now can seek payment by Wage Garnishment or Bank Levy.

What JPMorgan/Chase was accused of doing was claiming to have served the debtor with a summons when in fact they had not!  This is SEWER SERVICE!

I'm glad California has taken (or will be taking) JPMorgan/Chase to court! More state attorneys general should do the same!

In the meantime, if you feel that you have been the victim of abusive or illegal debt collection practices, contact your state's attorney general and file a complaint.

If you would like to read the entire article by Ms. Silver-Greenberg, CLICK HERE.

If you live in Texas, you have some unique laws that make debt settlement a great way to eliminate old credit card or other unsecured debts.

Due to various circumstances such as:

• Loss of employment
• Illness
• Death of Spouse
• Divorce
• or many other of life's challenges

...you may find yourself with too much debt and without the ability to make regular payments. When that happens, it doesn't take long before the DEBT COLLECTORS begin to start calling!

If this has happened (or is happening) to your, click here to learn how to STOP THE CALLS.

The debt collector may try to get you into a HARDSHIP PROGRAM!  BUT BEWARE!

If it has been several months since you made your last payment, the debt collector may file a complaint and you would receive a summons.

DON'T IGNORE THE SUMMONS!

If you owe the debt and cannot negotiate a settlement, the CREDITOR OR PLAINTIFF will be awarded a DEFAULT JUDGMENT.

In most states, the CREDIOR can get a WRIT OF GARNISHMENT that would result in an average of 25% of your net income being withheld from each paycheck until 100% of the debt is paid!

BUT NOT IN TEXAS!

Texas does not allow garnishment of wages in order to repay unsecured debt! This gives Texas residents a tremendous advantage and leverage in negotiating a settlement of their debts!

After being awarded a judgment, many creditors place a LIEN ON YOUR HOME. 

This means that before you sell or transfer the property, the debt (PLUS INTEREST, FEES, ETC,) would have to be paid to release the title!

BUT NOT IN TEXAS!

Texas has the best HOMESTEAD LAWS in the United States.

Basically, your principle residence cannot have a creditor place a lien after a judgment for unsecured debt! This protects Texas Residents great protection and comfort!

With these two laws protecting your wages and homestead, residents of Texas can and should be able to negotiate very favorable settlements!

We have been helping Texas Residents for over 10 years and we can help you too!

Experienced Debt Settlement companies understand the advantages of debt settlement in Texas. Therefore, debt collectors are more willing to settle debts for less!

Actual Debt Settlement Examples: (Click on Link below to view)

• Wells Fargo
• Bank of America
• Chase

photo by: Calsidyrose

According to a report issued by the United States Federal Reserve System, as of July 2012:

• Total US credit card debt was over $793 BILLION DOLLARS!
• The average credit card debt per household was $15,799.
• One out of 4 stated that their personal debt had increase by 26% in the last 12 months!
• 76% of college students have credit cards.

I read an article about Survival in the Outdoors recently.  Interestingly, many of the lessons on how to survive in an emergency can be applied to how to survive with too much debt.

Step One: Don't Panic!

Stop and take a deep breath! Do not panic.  Do not feel ashamned that you are lost or in this prdicament.  Some of the best outdoors people in the world have become lost or disoriented,  and have run around in circles!

Slow down, relax and take a good look at your situation. There is a way out of this!

The same thing applies with having too much debt.  When you finally realize that you are in real trouble with your debt, DON'T PANIC!  Take a deep breath and realize that you are not the only one!

There is a way out of this!

Step Two: Evaluate your Circumstances

When lost or in an emergency situation, the next thing you must do is take stock of your circumstances:

• Do you have water, shelter, food, fire?
• Does anyone know where you are?
• What supplies or tools do you have?

Once get a really good look at your situation, you can start to take steps to get out of it!

The same thing applies with having too much debt:

Complete a BUDGET OR FINANCIAL WORKSHEET.

This is the only way you can really know:

• How much debt you really have?
• What are the total of the minimum payments you have to make?
• How much are all of the other household bills?
• Is there any discretionary or money left over at the end of the month?

Step Three:  Make a Plan

In a survival situation, once you calm down and get a good idea of your circumstances, you can devise a plan.

Make a shelter.  You can survive without food for weeks if necessary and many days without water, but if you are caught in the cold and/or rain, you could die from hypothremia within a few hours!

In other words, you have to survive to survive!

The same holds true for getting out of debt. The most important thing you can do is to formulate a plan. Depending on your unique circumstances, you may need qualify for:

A DEBT MANANGEMENT PROGRAM

This program allows you to have:

• One monthly payment
• All of your creditors are being paid each month
• Late fees and interest are reduced or eliminated
• Creditors stop calling!

To see if you qualify, --> CLICK HERE <--

But if you don't qualify for the Debt Management Program, you may qualify for a:

DEBT SETTLEMENT PROGRAM

This program allows you to have:

• One monthly payment that will work with your budget
• Your debts will be negotiated and settled for much less than the balances
• Creditor calls can be stopped
• Once all of your debts are settled, your credit report will improve

Bankruptcy

If neither of these programs work for you, then you may qualify for BANKRUPTCY.  Bankrupcty is a scarry word, but many times, it is the best and only solution.

There are various types of bankruptcies and you should consult a bankruptcy specialist to learn more about your bankruptcy options.

The worst thing you can do in a survival situation is to do nothing! The same thing applies to surviving with too much debt.

We can help point you in the right direction.

For a FREE Consultation, click here.

If you owe taxes to either the IRS or to your state, don't ignore your tax bill!

Some people realize that they either have not had enough money withheld over the year or due to self-employment and/or payroll tax for business owners, they owe more money...but just don't have it.

What should you do?

MAKE SURE YOU FILE THE TAX RETURN!

If you fail to file, you will be facing LATE FILING FEES, PENALTIES AND INTEREST.  The worst thing you can do is to ignore you tax bill.  IT WON'T HELP OR SOLVE THE PROBLEM!

YOU CAN FILE AN EXTENSION!

By filing an extension (by April 15th) and you have until October 15th to submit the completed return.

If you can submit an estimated amount that you owe (close to the same as last year) with your extension, it will help reduce the interest and penalties that start to add up.

Something is better than nothing!

CONTACT THE IRS TO DISCUSS YOUR OPTIONS

Don't be afraid to call the IRS to explain your situation and find out what you can do to help yourself.  However, be prepared to be on the phone for a long, long time!  Wait times can be 45 minutes to an hour or more.

When you finally get an IRS representative, you may or may not be able to understand them.  I'm not talking just about language differences, but some agents are just not very easy to understand and/or are not very pleasant people!

My advice...hang up and call again.  Ultimately, you should get connected to someone who can help.  The idea that all IRS agents are mean, hard-hearted people is just not true!

YOU MAY QUALIFY FOR AN INSTALLMENT PLAN

If you file your taxes on time (by April 15th) or if you file an extension, you may be able to set up an installment payment plan.

You can go on line to get the IRS Form 9465.

Click here to get a copy of instructions for IRS Form 9465.

Payments can be made by mail or you can set up automatic payments.

YOU MAY BE ABLE TO NEGOTIATE A REDUCTION IN YOUR TAX BILL!

If you owe several thousands of dollars of taxes, you may be able to negotiate a reduction.  This is called "an offer in compromise" and it is similar to a DEBT SETTLEMENT AGREEMENT.

• Be careful of the ads on TV that promise to reduce your tax bill by 80%-90%!

• You have to pay for their services (which if they could deliver wouldn't be so bad), but before you lay out any money, you need to see results!

• Check with your Better Business Bureau and do some research before choosing a TAX REDUCTION COMPANY.

BOTTOM LINE...

• DON'T IGNORE YOUR TAX BILL!
• FILE A RETURN AND/OR EXTENSION BY APRIL 15TH
• CONTACT THE IRS
• YOU MAY QUALIFY FOR AN INSTALLMENT PAYMENT PLAN
• YOU MAY BE ABLE TO NEGOTIATE A TAX REDUCTION

If you need help, let us know!

Credit repair is a popular and often misused term.

If you have errors on your  credit report, here are 3 tips on how to repair  your credit report:

1.  If you haven't done so already, request a FREE COPY of your Credit Report.

The Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of consumer information on the nation's credit reporting agencies.

If you want to dispute items on the report, you need to follow some simple steps.

But first, you need to be aware that there are many so called "Credit Repair Companies" that are making claims like:

• We can remove bankruptcies, judgments, liens and bad loans from your credit report!
• We can remove all charge offs and bad credit history to improve your credit score!
• Improve your credit score by 50-100 points in 30 days!

If it sounds too good to be true, it probably is.  You can accomplish the same thing on your own!

Understand that a Credit Report is a history of your credit...how much, what kind, repayment history, etc.

If you have had a rough time and missed payments or had accounts charged off and go to debt collectors, your credit report will reflect it and THERE IS NOTHING A CREDIT REPAIR COMPANY CAN DO ABOUT LEGITIMATE ITEMS.

However, if you have items on your credit report such as:

• Accounts showing a balance when you know AND HAVE PROOF that you paid it off...
• Items that still remain after the STATUE OF LIMITATIONS for your state has passed...
• Address or employment errors...
• Accounts that you don't have...AND CAN PROVE IT

...then, you can dispute those items yourself and with the proper proof and/or documentation, can have those items removed.

2. Gather evidence and proof for your dispute.

Let's say that there is a Visa account with a balance of $5,000 that you paid off either IN FULL or Settled for Less Than the Full Amount.

Get a copy of your cancelled check(s) or bank statements clearing showing that you have paid this account as agreed.

If you cannot find the proof, then you can try to make the creditor VALIDATE THE DEBT.

Mail a detail account along with copies (not originals) of your canceled checks or bank statements (make sure to black out bank account numbers) to each of the credit reporting agencies.

• Experian
• TransUnion
• Equifax

You can also go on line to each reporting agency, but I think the written proof mailed by CERTIFIED MAIL (so you can prove they received it) is much more efficient.

The credit reporting agencies will contact the disputed creditor or debt collector.

Once the investigation is complete, the credit reporting company must provide you with a copy of the results and a free copy of your credit report if the dispute results in a change.

3.  If you receive a letter from a debt collector and you don't think you owe the debt, MAKE THEM VALIDATE IT!

Many debt collection agencies BUY OLD DEBT at pennies on the dollar and try to collect. Some of the debts are legitimate and yet many are not. Because of the harsh language and threats of PENDING LEGAL ACTION, many consumers just pay the debt!

If you know that you don't owe the debt, send the same information as above the to debt collector.  Demand that they provide you with documentation of the original contract showing your signature and date.

If they cannot provide the documentation or if they deem it is too much trouble to investigate, they will cease collection activities.

If they do not provide documentation that clearly shows you owe the debt, and they continue to contact you, REPORT THEM TO YOUR STATE'S ATTORNEY GENERAL'S OFFICE AND the FEDERAL TRADE COMMISSION (FTC).

If you find that you have old debts that you legitimately owe, you may be able to negotiate a settlement for much less than the balance!  We can help you through the process.  Simply give us a call at 1-877-492-4109 or click on the link below.