 Frequently Asked Questions
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How will this affect my credit?
A debt settlement program may have an adverse effect on your credit report and credit score. Your credit score will get worse before it gets better because regular monthly payments are not being made to your creditors. After settlement your creditor may comment that the account was settled for less than the full amount on your credit report.
Can these creditors send me a 1099 on the savings of the negotiated debt and am I liable to pay this?
Yes they can if the savings is more then $600.00 however, depending upon your financial situation you may be exempt from this.For more information on tax ramifications to you personally you may also wish to consult a CPA or Tax Attorney and to refer to the IRS website www.ustreas.irs.gov IRS Publication 908- "Bankruptcy Tax Guide" and IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness available on the IRS website. (We are not tax experts and this should not be taken as tax advice. Please consult with a tax professional).
Can debt settlement be better than bankruptcy?
It depends upon you individual situation. Bankruptcy stays on your credit for 7-10 years, depending upon the situation. With our program, the debts you enroll may be completely satisfied in 2-3 years(2).
How can your company ensure that my creditors will settle for a lower balance?
There are no guarantees with the program. Our Debt Negotiators have years of experience in the industry and have established key relationships with the creditors. They are able to settle with just about any one and if they are unwilling to settle then we move on to the next creditor.
Can't I do this myself?
You are absolutely correct but most people can repair their own car or install things in their home, however, they leave it to the professionals. Our Debt Negotiators have established great contacts and developed techniques that allow them to achieve lower settlement percentage than the average consumer can achieve. They are the most ethical and professional and enjoy saving our clients thousands of dollars every month when we negotiate settlements. Your results may vary.
When do you start negotiating with creditors?
AR Trust Services communications with creditors are handled on a case by case basis. In some instances creditors may not be contacted until several months after you enroll. We generally starts with the most eager and cooperative creditors and then depending upon the circumstances and your ability to settle moves on to the next one allowing you to see results every 3-4 months depending on the willingness of creditors to negotiate and settle, your payment terms , and individual situation.
Can I get credit cards again once I've completed the program?
Sure you can get credit cards; however, we strongly suggest that you pay off the balance at the end of the month so you don't end up in the same situation.
What is unsecured debt?
Unsecured debt is any debt that there is no collateral attached to it. Credit cards, medical bills, collection agencies and old utility bills are all examples of unsecured debt.
Do you make payments to my creditors?
No. You will be responsible for saving sufficient funds that you control to fund debt settlements that we will endeavor to negotiate on your behalf. You and only you will be able to pay your creditors and we will not have any control over your funds. We do not make monthly payments to creditors.
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