Is an aggressive approach to debt reduction, which is appropriate for debtors with a serious amount of debt or who are considering bankruptcy. A debt settlement company negotiates with the creditors to settle the debt for a lower amount than owed, as the debtor saves their money the negotiation process will begin. Once the settlement amount is reached and funds are available, that sum is sent to the creditor. After the funds are paid per the negotiated settlement, the debtor's obligation for that particular creditor will be considered fulfilled.
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Making minimum payments on a $20,000 credit card debt at 20% interest can take decades to pay off. CDMA can assist you in settling your debt in 36 months or less. (This is the statement that is under "Calculate payment" that follows ever page.)
Debt Negotiation Program
Debt Negotiation is an aggressive approach to debt reduction and is the alternative to filing bankruptcy. A Debt Negotiation agency negotiates with the creditors to settle your debt for a lower amount than owed. Once the debt has been settled, the creditor will send a letter stating the debt has been satisfied. The creditors may also notify the credit bureaus that the account is "SETTLED FOR LESS THAN THE FULL AMOUNT".
Debt Negotiation is a way to get out of debt in the shortest amount of time and for the least amount of money, without filing for bankruptcy. Creditors will usually settle for less than owed. Although the bankruptcy laws have recently changed the creditors know that the option to file bankruptcy still exists. They would rather settle the account in order to get as much money as they can. With Debt Negotiation, CDMA currently averages 43% settlements, which would result in a 50-60% savings of the account balances.
*This statement is an example of past performance and is not intended to be a guarantee of any future settlement results. Fees are not included.
Debt Negotiation can be harmful to a debtor's credit rating while they are in the process of settling their debt. Creditors will not agree to settle on an account that is in current status. The debtor's credit report will reflect that they are behind in payments thus having a negative impact on your bureau report, until the debts are settled.
How do you qualify for the Debt Negotiation program? You must have a minimum 'UNSECURED' TOTAL DEBT OF $10,000.
UNSECURED DEBT INCLUDES:
Credit Card Debt
Unsecured Lines of Credit
Collection Agencies
Hospital and Medical Bills
Department Store Cards
Repossessed Vehicle Loans
*WE DO NOT ACCEPT ANY FEDERAL DEBT, STUDENT LOANS, INCOME TAX DEBT, OR ANY SECURED LOANS.
Bankruptcy
While Bankruptcy is still an option, most clients are not interested in filing. This is largely due to the new bankruptcy laws as of October 17, 2005. In the past, you could file Chapter 7 Bankruptcy and in approximately 4 months, the debt would be eliminated. Now you must take an approved Financial Counseling Course within 6 months prior to filing.
The purpose of the new bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased. These people must file Chapter 13 Bankruptcy.
Debtors considering Bankruptcy must provide to the trustee a copy of a tax return or transcript of a tax return for the period for which the return was due. You should seek an attorney within your home state as Bankruptcy Laws vary from state to state.
Another major change to the bankruptcy laws involve certain hurdles the consumer must clear before filing bankruptcy, no matter what the chapter.
Making minimum payments on a $20,000 credit card debt at 20% interest can take decades to pay off. CDMA can assist you in settling your debt in 36 months or less.
