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CreditAllianceGroup..technology to the rescue

2008-05-21T14:44:00.004-05:00

Bad things happen to good people. We’ve all been there. No one enjoys having insult added to injury. When a consumer is seriously in debt, collectors will be calling and those calls are embarrassing to say the least, dehumanizing at worst.

Congress has found that: "Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy." 15 USC 1692(a).

In fact, getting rid of harassing collection calls is what drives many consumers to file bankruptcy. The bankruptcy laws have changed, so now what is a consumer to do?

How to END collection calls 24/7 - Invented by an attorney who has seen the effects of harassing collection calls, The CreditAllianceGroup DAAN Home Transmitter Module is a compact, patented, home transmitter Module that will automatically redirect all of your collection calls 24/7 to your debt relief counselor without you needing to say a word. The CreditAllianceGroup DAAN Home Transmitter Module also advises collectors not to call you again under possible penalty of law and more. With The CreditAllianceGroup DAAN Home Transmitter Module at your fingertips, the peace of mind is immense, immediate, inexpensive and 24/7. But if you’ve never dealt with a collector, you still may be wondering why you need the CreditAllianceGroup DAAN Home Transmitter Module .

Please consider the following: What you should know if you are one of the millions of Americans in debtCollectors:-are professionals whose goal is to keep you on the phone as long as necessary to get money now,-will usually, in a condescending or derogatory tone, make you feel less than human if you can’t pay now,-may illegally harass you, your wife and your children using horrific tactics to collect now,-may call employers, neighbors, friends and relatives to locate you if you do not answer the phone,-typically increase the frequency of calls until they get the money, and-will be more willing to arrive at a debt relief plan with your counselor if they know further calls to you may be considered harassment and that The CreditAllianceGroup DAAN Home Transmitter Module could assist in proving it, resulting in collectors paying you damages.

Why would collectors obey The CreditAllianceGroup DAAN Home Transmitter Module if I can tell them myself?

Several reasons.

1. Do you really want to explain your situation every time the phone rings? "After all of these months of calls, your product got rid them and kept them from calling back with the touch of my finger." P.C., Ohio

Do you want to argue with collectors in front of family or friends?

Do you want the collector calling YOU back when they should be negotiating with your creditors "Most of The CreditAllianceGroup DAAN Home Transmitter Module reported a dramatic drop in phone calls in the first week...

Dou you want your spouse to deal with harassing calls all day while you are at work? "That tiny box that connected to our phone stopped EVERYTHING. Within seven days we even felt comfortable enough to actually not screen our calls. It really saved the mental and physical health of my husband, and gave us a piece of mind that we hadn't had in quite some time. But best of all it saved our relationship." D.P., Ohio

2. Collectors are after money, not a lengthy conversation with you unless that is what it takes to get the money. So if they can't speak with you, they will move on to whomever is next in line with disbursing the funds.

3. The CreditAllianceGroup DAAN Home Transmitter Module discreetly refers collectors to our call center to locate your counselor. We capture and retain that information, which could be the basis of a monetary award to you should the collector attempt to harass you in the future. Federal law allows you to recover $1,000 per violation, plus damages (money for pain and suffering, etc., caused by the collector) and even attorney's fees from collectors who harass you.

4. It is IMPOSSIBLE for a collector to argue with , harass or embarrass The CreditAllianceGroup DAAN Home Transmitter Module . No matter when they call; no matter who may be in the same room, you never have to say a word with The CreditAllianceGroup DAAN Home Transmitter Module . Just press star and hang up.

5. Once collectors know you have The CreditAllianceGroup DAAN Home Transmitter Module , they are more prone to work out an agreement with your counselor, rather than risk legal action by harassing you. Again, collectors are after money, not law suits. Plus, The CreditAllianceGroup DAAN Home Transmitter Module adds a "twist" collectors NEVER expect that makes them think more than twice before EVER considering calling you again, and that is the message from a The CreditAllianceGroup DAAN Home Transmitter Module attorney. But what does all this cost you?

New Technology Provides Relief from Harassing Collection Calls

2008-05-21T12:53:00.005-05:00

(Dallas, TX) – May 21, 2008 – New technology has arrived to help relieve consumers struggling to make ends meet from the overwhelming and even harassing barrage of collection calls that can ensue from a missed or late payment to a creditor.

The catalyst in this innovative new service is the CreditAllianceGroup DAAN Home Transmitter Module, a tiny device that plugs into a regular home phone jack. One module can transmit through all the phones in the same home, even cordless phones. It is activated when a call is received and the user, recognizing the call to be a collection effort, simply presses the star key on their phone and hangs up. The CreditAllianceGroup DAAN Home Transmitter Module then takes over; informing creditors and collectors that the user has retained an attorney to direct the creditor or collector to contact their representing agency. But, that’s not all. The CreditAllianceGroup DAAN Home Transmitter Module also advises the caller not to call back under possible penalty of law (under the Fair Debt Collection Practices Act and/or applicable state law), repeats the contact information of the user’s representing agency, and then automatically disconnects the call.

The CreditAllianceGroup Client never has to say a word or speak to a debt collector again. Past users of the CreditAllianceGroup DAAN Home Transmitter Module report that almost all collection calls stopped in an average of 3 days. Testimonials back up the ease in which the CreditAllianceGroup DAAN Home Transmitter Module ends collection calls and keeps collectors from calling back repeatedly. “One of our CreditAllianceGroup DAAN Home Transmitter Module users told us he had over 100 creditors calling him daily. After just a few days of using the DAAN unit, his phone went silent allowing him to return to a normal life and focus on addressing his debts,” says Attorney Ken Jursinski, a founding member of the DAAN Group and co-inventor of the CreditAllianceGroup DAAN Home Transmitter Module. CreditAllianceGroup is one of the financial counseling agency the DAAN Group has agreed to partner with in using its patented technology.

Key to Ending Collection Calls Immediately

2008-05-21T12:50:00.001-05:00

CreditAllianceGroup DAAN Home Transmitter Module is the Key to Ending Collection Calls Immediately

Abusive collection calls are a growing problem for consumers, as evidenced by the Federal Trade Commission's 2006 annual report to Congress. Over 90,000 complaints about collection calls were filed with the FTC in 2005, almost double the number of complaints received in 2003. Even more disturbing is the fact that the Commission believes that the number of consumers who complain to the FTC "...represent a relatively small percentage of the total number of consumers who actually encounter problems with debt collectors". Credit counselors also know firsthand the effects of collection calls.

Most debt relief ads on TV and radio claim to stop collection calls. In reality, it could take up to 3 months after entering a program to finalize a debt reduction plan. In the meantime, many consumers are bombarded by collection calls. Worse yet is the fact that some of those debt relief agencies actually want the dehumanizing calls to continue to scare consumers into continued program compliance. Clients quickly realize they are paying into a program with one hand and explaining their situation to impatient and abusive collectors with the other. But technology has come to the rescue. The patented CreditAllianceGroup DAAN Home Transmitter Module, discreetly and automatically redirects annoying collectors to AAA Fair Credit Foundation without the consumer ever saying a word or even remaining on the line with the calling collector.
Here's how it works.

Clients entering into CreditAllianceGroup debt management relief program are issued a compact, CreditAllianceGroup DAAN Home Transmitter Module that simply plugs into any phone jack in the home. When a collector calls, the consumer presses the phone's star key and hangs-up, "instructing" the CreditAllianceGroup DAAN Home Transmitter Module to redirect that caller. That's a huge relief to spouses, who usually field the bulk of home collection calls daily, resulting in strained marital relationships nightly. It's also a welcomed way to discreetly end collection calls when family or friends are present. Creditors appreciate the notification because their collection departments are usually the last to be told an agreement has been reached.

How long will collection calls continue?

CreditAllianceGroup clients using the CreditAllianceGroup DAAN Home Transmitter Module have noted that most collection calls completely stop within 3 days or so depending on specific circumstances. For every incoming call you can manually stop it immediately with a simple push of a button. Within a few days all calls should have stopped completely after the collectors have heard the message the unit delivers. Compare this to the 2-3 months it would normally take for the calls to stop when with working with a credit program without CreditAllianceGroup DAAN Home Transmitter Module.

How to use the CreditAllianceGroup DAAN Home Transmitter Module Unit

1. Simply plug the CreditAllianceGroup DAAN Home Transmitter Module into ANY phone jack in your home. "Click"...done! The module can now be activated from ANY phone in your home.

2. When you answer the phone and the caller is a creditor or collector, say nothing...just press the star (*) key on whatever phone you are on, even cordless, and hang- up. The CreditAllianceGroup DAAN Home Transmitter Module will take over, discretely advising the caller that you have retained a (CreditAllianceGroup DAAN network) attorney and how to contact the attorney (who will in turn refer the caller to us for debt resolution). Then, CreditAllianceGroup-DAAN asserts the attorney-client privilege FOR you and advises the caller NOT to call you back pursuant to law, after which the call is automatically terminated.

3. Recommended: Keep a log of the time, date and identity of the incoming calls where the client used CreditAllianceGroup DAAN Home Transmitter Module. It is further evidence for a harassment suit should the circumstances warrant it.
4. When you no longer need CreditAllianceGroup DAAN Home Transmitter Module, simply return it to CreditAllianceGroup. Want to know more about how it works? Contact CreditAllianceGroup Toll Free 1-866-454-5044.

With CreditAllianceGroup DAAN Home Transmitter Module at your fingertips, the peace of mind is immense, immediate, inexpensive and 24/7.

Consolidating Your Debt

2008-05-13T10:03:00.002-05:00

Consolidating your debt in a single payment can save on interest payments and speed the process of paying off debts

www.CreditAllianceGroup.net

Is my information kept confidential with CreditAllianceGroup ?

2008-05-13T09:59:00.002-05:00

Yes. CreditAllianceGroup privacy policy pledges that client information will be strictly safeguarded and stored in a safe manner. We maintain physical, electronic and procedural safeguards that guard your nonpublic personal information and will not disclose information to anyone except those persons authorized by you.

http://www.creditalliancegroup.net/

CreditAllianceGroup - Best Place to Work Dallas Forth Worth

2008-04-28T12:35:00.000-05:00

How long will it take to settle my debts?

2008-04-18T12:33:00.000-05:00

The time required to settle all your debts depends upon your situation. One of our Credit Specialists can provide you an estimate during your free consultation. Most clients are able to settle all their debts within 6 to 60 months.

I am thinking about getting help to stabilize my financial situation. What else should I consider?

2008-04-15T12:35:00.000-05:00

If you're thinking about getting help to stabilize your financial situation, be cautious.

Don't rely on oral promises. Get everything in writing.
Check out any company with your local consumer protection office and the Better Business Bureau in the company's location. They may be able to tell you whether other consumers have registered complaints about the business.
Find out what services the business provides and what it charges.

For more information on stabilizing your financial situation, see CreditAllianceGroup.

I've done my best to stay within my budget. Is there anyone who can help?

2008-04-15T12:33:00.000-05:00

If you aren't disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counseling service. Your creditors may be willing to accept reduced payments if you enter a debt repayment plan with a reputable organization.

For more information on Credit Counseling Services see Credit Counseling.

I'm considering Debt Consolidation. Where is the best place to start?

2008-04-15T12:31:00.001-05:00

The first step toward taking control of your financial situation is to do a realistic assessment of how much money comes in and how much money you spend.

Start by listing your income from all sources.
Then, list your "fixed" expenses,those that are the same each month, such as mortgage payments or rent, car payments, or insurance premiums.
Next, list the expenses that vary, such as entertainment, recreation, or clothing.
For more information on taking control of your financial situation see CreditAllianceGroup.

Congratulations Credit Alliance Group for making the Dallas Business Journal’s Best Places to Work 2008 in Dallas-Fort Worth list.

2008-03-30T14:49:00.012-05:00

CreditAllianceGroup Best Places to Work in Dallas-Fort Worth Awards Lunch on The 2008 event Once again, congratulations on your achievement. The Dallas Business Journal team will see your team on May 1st! CreditAllianceGroup will receive a commemorative award to display in their office and we hope that your CEO or top local executive will be able to attend so that they can be presented with the award onstage.

Announcing the 2008 Best Places to Work in Dallas-Fort Worth...Credit Alliance Group

2008-03-14T11:42:00.006-05:00

This annual event, now in its 6th year, has become the most sought-after, high-profile business award in Texas. For the honored companies who make the list of Best Places to Work in Dallas-Fort Worth, this award of recognition lasts much longer than one day of celebration at the fun-filled Awards Luncheon. It recognizes the companies that make employee satisfaction their competitive edge. It adds value to a company's reputation in the community and enriches their corporate culture by acknowledging the pride that their managers and employees enjoy simply by going to work every day.

Announcing the 2008 Best Places to Work in Dallas-Fort Worth...

Debt Free - Dedicated to helping people become debt free

2008-03-13T19:42:00.006-05:00

Debt, Personal Finance, Consolidation, and Loans. Valuable information to help you get debt free and stay debt free forever. What can help your personal finances and what can't.

401k Limits – Contribution, Withdrawal and More

2008-03-13T19:36:00.004-05:00

For many Americans their 401k plan is the most powerful vehicle in their retirement garage. According to recent estimates, only about 5% of people max out their 401k contributions, but according to the Federal Bureau of Labor Statistics, only 21% of workers in America are covered by traditional employer sponsored pension plans. I'll bet that among younger employees, the percentage covered by such pension plans is far lower. The new employer sponsored retirement vehicle of choice is the 401k, which be employer sponsored. If so few are maxing out their 401k contributions, what are they thinking will provide for them in their retirement years? Just what are the limits you're subject to when contributing, withdrawing or rolling over a 401k plan anyway?

401k Contribution Limits:For 2008, according to IRS rules you can contribute a maximum of $15,500 to your 401k plan. If you're one of the 95% who failed to contribute the maximum amount to the plan in prior years, the IRS allows you to contribute a “catch up” amount, which for 2008 is $5,000. You must be over 50 to take advantage of the catch up contribution. Any employer matching funds are not included in the IRS contribution limits. So, if you're contributing the maximum of $15,500 and your employer provides 50% matching funds, their $7,750 is over and above the limit, so your effective limit for 2008 is $23,250.

401k Rollover Limits:You're not limited on the dollar amount for 401k rollovers, as you are with contributions, however you can only roll over once every 12 months. Unless you're a rabid job changer, this shouldn't present too much of a barrier.

401k Withdrawal Limits:There are several limits placed upon your ability to withdraw the funds in your 401k. You can't just retire, pull out the entire lump sum, and head for the Caribbean. Well, you could, but you would be faced with severe financial penalties for doing so.

Withdrawal Age - There age limits for 401k withdrawals. Currently, you must be 59-1/2 years of age to begin withdrawal of funds, unless you are rolling over into another IRS approved financial vehicle such as an IRA. You are also allowed to withdraw funds before age 59-1/2 to avoid foreclosure if you meet the terms of IRS section 213. I recently did a post covering early withdrawal and other 401k hardship withdrawals. You must also begin withdrawal from your 401k by age 70-1/2 if you have not already begun doing so, unless you are still working for the employer sponsoring the 401k. The post 70-1/2 withdrawals must meet IRS mandated minimums, currently defined by tables and based on life expectancy. Failure to take the post 70-1/2 withdrawals triggers a whopping 50% (of the mandated withdrawal amount) IRS penalty, so take the money out)

Withdrawal Amount - There are currently no limits on how much you can take out, but remember withdrawals are taxable events. The IRS allows you to take the entire amount of the 401k, but it is taxed as ordinary income and reported as such on your form 1040, so the more your take out, the higher tax bracket in which you place yourself. If you were born before 1936, you meet special rules, including the ability to average a lump sum distribution over 10 years. See your tax professional if you were born when Roosevelt (either one) was President.

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Creditor Debt Settlement From Wikipedia, the free encyclopedia

2008-03-13T15:09:00.005-05:00

From Wikipedia, the free encyclopedia

Creditor Debt Settlement Also known as Debt Arbitration or Debt Negotiation, is an aggressive approach to debt reduction, which may be appropriate for debtors with serious amount of debt and are considering bankruptcy. A creditor debt settlement agency (Credit Alliance Group) negotiates with the creditors to settle the debt for a lower amount than owed, as the debtor saves their money for a lump-sum settlement payment. During the creditor debt settlement process, the debtor will obtain a letter from the creditor stating the debt obligation was fulfilled. The creditor will typically make a report to the credit bureaus that the debt has been “Paid” or “Settled”

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Stricter mortgage rules proposed

2008-03-13T15:04:00.002-05:00

Economic policymakers on Thursday recommended stricter regulation of mortgage lenders as part of a broad effort to prevent a repeat of a credit crisis threatening to drive the country into recession.

With problems in the credit and housing markets worsening, the Bush administration now seems to favor a larger role for government -- an approach Republicans generally have had little appetite for.

Recommendations from a presidential advisory group on financial markets cover mortgage lenders and other institutions, as well as investors, credit ratings agencies and regulators.
Treasury Secretary Henry Paulson, who leads that group, said the effort is not about "finding excuses and scapegoats." The suggested actions, he said, are intended to avoid another meltdown in the credit and housing markets.

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Credit Alliance Group Legal Resource Center

2008-03-13T14:56:00.001-05:00

Your connection to find attorneys, lawyer ratings, prepaid legal services, certified paralegals, lemon law info, Allstate legal forms, IRS tax lawyers, DUI attorneys, wrongful death lawyers, and more!

Below we provide an informative article entitled, “Attorney-at-Law” to help you understand the role of an attorney. For those visitors in search of an attorney in their area, we strongly suggest that you visit the website of several law firms prior to engaging the services of any attorney.

In addition, we offer resources for debt consolidation, debt settlement programs and alternatives to bankruptcy. Simply click on the link of your choice to access these helpful resources.

Find A Lawyer Free.
Nationwide, Criminal/DUI, Work Comp Accident/Injury, Malpractice, SSD.www.Attorney Help.us

Bankruptcy Legal Aid
You Have a Hectic Lifestyle. Seek Help in Filing for Bankruptcy.www.TotalBankruptcy.com

Criminal Law Attorney
Find Dallas Area Criminal Law Attorneys & Legal Counsel Todaywww.Superpages.com

Dallas/Ft. Worth Law Firm
Contact Our Lawyers for Help With Your Financial Legal Troubles.www.JudithSwift.com

Find the Right Lawyer
We Match You to the Right Lawyer. Free, Secure, and Confidential.www.LegalMatch.com

Business Lawyer - D/FW
Let Us Be Your General Counsel Experience and Integritywww.zismanlaw.com

Find An Attorney Free
Injury, Bankruptcy, Divorce, Criminal, Malpractice, SSD, Custodywww.AttorneyLink.us

Looking for a Lawyer?
We'll connect you to a local injury lawyer for your legal needs. Free.www.LawOnline.com

Bankruptcy Attorneys
Attorneys Available in Your Area. Online Evaluation and Information.www.TotalLawyers.com

Tyler Texas Attorney
Our Law Firm Provides Superior Legal Services. Call For A Lawyer.

The Center For Debt Management

2008-03-13T14:52:00.001-05:00

CreditAllianceGroup is your connection for free credit counseling services, debt management services, debt consolidation , debt settlements, debt solutions, debt relief, business debt, free credit reports, credit scores, CreditAllianceGroup credit repair and more!

Herein you’ll learn that there are various way in which to consolidate debt. You’ll learn about debt management plans, consumer credit counseling services, debt settlements services, how to file for bankruptcy, effective credit repair, the importance of checking your credit report and more!

In addition, we offer resources for credit and financing, financial services, insurance, taxes and other topics of interest. Simply click on the link of your choice to access these helpful resources.

Credit Card Debt Settlement Programs and Services

2008-03-13T14:47:00.003-05:00

A Debt Settlement is a process used by both debtors and creditors to settle a debt for less than what is owed. The process is also called Debt Negotiation, Debt Reduction, and Debt Arbitration. Most often the process is used tonegotiate a credit card debt settlement. If negotiated properly on behalf of the debtor it can quickly and dramatically reduce the debtor's debt. Debt settlements range from 30% to 70% of the current debt, with the typical debt settled for 45 cents on the dollar. After paying agency fees, a typical client realizes a savings of around 40% of their original debt placed in the program. Most debtors resolve their debt within 1-3 years!
Beware that there are many credit card debt settlement services that claim they can save debtors 50% to 80% — in an attempt to entice them to enroll in their program. Debtors that enroll with these debt settlement companies are sure to be disappointed as such savings rarely, if ever, materialize.

Debt settlement programs and fees can vary greatly depending on many factors, including the skills of the debt settlement negotiator, creditors, and the credit card debt settlement company.
While some debtors may want to negotiate their own debt settlement, it is usually best working through a professional debt settlement companywho knows the ropes and can watch out for the debtor's best interest. There is definitely a rightway and a wrong way to handle this procedure.
Click here to learn more about debt settlement programs and other debt reduction services, orto find a professional credit card debt settlement company to settle your unsecured debt.

www.CreditAllianceGroup.com

Prepaid Scam

2008-03-12T17:36:00.000-05:00

The Federal Trade Commission requested and received an order from a federal judge to halt an operation marketing VISA-and MasterCard-branded stored-value cards from making unauthorized debits from consumers' bank accounts. According to a complaint filed by the FTC, the defendants marketed prepaid cards under a variety of names through Web sites and pop-up and e-mail advertisements that direct consumers to Web sites for the individual cards. These include Acclaim Visa, Impact Visa, Sterling Visa, VIP Advantage Visa, Vue Visa, Elite Plus MasterCard, Impact MasterCard, Secure Deposit MasterCard, VIP MasterCard, and Vue MasterCard. The defendants also market unrelated short-term loans on Web sites such as www.SuperAutoSource.com, www.SuperCashSource.com, and www.FastCashUSA.com. The complaint alleges that through their prepaid card programs the defendants debited, without authorization, a $159.95 application and processing fee from consumers' bank accounts, including from consumers who either had no contact with the defendants or had applied for an unrelated short-term loan. The federal judge issued a temporary restraining order barring unauthorized debiting and freezing the assets of EdebitPay, LLC, EDP Reporting, LLC, EDP Technologies Corporation, Secure Deposit Card Inc. For more information visit: http://ftc.gov/bcp/consumer.shtm.

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Tallying the True Costs of Debt

2008-03-12T11:35:00.001-05:00

Calculating Your Options for Debt Relief - When deciding the best option for your debt issues, you must first look at your cash flow on a monthly basis. The calculator will compare each option on a monthly cash flow basis as well as the costs to pay back the debt over a specific period of time.

http://www.creditalliancegroup.com/debtcalculator.html

The New Bankruptcy Law

2008-03-12T11:19:00.001-05:00

The new bankruptcy law brings some unwelcome changes for those who are considering bankruptcy. Some filers with higher incomes won't be allowed to use Chapter 7, but will instead have to repay some of their debt under Chapter 13. All debtors will have to get credit counseling before they can file a bankruptcy case. And, because the law imposes new requirements on lawyers, it may be tougher to find a bankruptcy attorney.

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What's your 2008 credit score?

2008-03-12T11:00:00.003-05:00

CAG Tips:

http://www.creditalliancegroup.com/

This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. http://www.annualcreditreport.com/ is the official site to help consumers to obtain their free credit report.

Request your free annual credit report.

It's Quick, Easy and Secure

Rock and a Hard Place

2008-03-12T10:06:00.007-05:00

DMPs can get you lower interest rates and flexible payment schedules while you work out your debt problem. They'll also help you manage your finances to avoid trouble again. If you can find a way to pay your debts in full using a DMP, that's probably best for your credit profile. But what if you simply can't? What if you have large medical bills, illness, unemployment, divorce, or other big and unforeseen financial problems?

You may find yourself caught between the rock of bankruptcy and the hard place of an unmanageable debt load -- with no real way out. You may have stopped making payments on all or part of your outstanding debts, or you may have reached the point where your debt has been sold off to a new creditor.

Dwindling Options

For many years, bankruptcy was the primary vehicle for those otherwise unable to cope with an impossible debt load. But now that's become harder, too, with new laws that took effect in late 2005. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was designed to limit "abusive" consumer bankruptcy filings. Among other provisions, it forces a more stringent means test to qualify for a Chapter 7 liquidation-of-debts bankruptcy. The new law effectively lowers income thresholds and assigns higher values to personal assets you own. If your income exceeds state median income and you can pay as little as $100 a month after housing, car payments, past-due taxes, and child support, you may not qualify for Chapter 7. Those not qualifying for Chapter 7 can file Chapter 13, but Chapter 13 requires eventual repayment of all secured debts and as much unsecured debt as possible.

Settling for Less

The means test and other provisions of the law require more paperwork and attorney involvement, effectively raising the cost of the bankruptcy process for either "chapter." You must show that you've already been through credit counseling, and there are new limits for the number of times someone can file for bankruptcy in a given period. In a nutshell, bankruptcy is still possible, but much more difficult and expensive for those in dire straits. That plus the fact that the designation "BK" leaves the biggest hit on your credit record make it clearly not a good place to go.

So what can you do if bankruptcy isn't an option, or not the route you've chosen to take? There's another way: Under the right circumstances, you may be able to negotiate a debt settlement for your unsecured debts like credit card or hospital bills. A debt settlement allows you to discharge debts for some percentage of the full amount.

How Debt Settlement Works - Like DMPs, debt settlement is typically handled through a company specializing in managing the settlement and dealing directly with the creditors. As with credit counseling, there are legitimate players -- and more than a few swindlers. First, the debt settlement company will screen you to decide if you're a good candidate. About 40 to 60 percent of those who approach a settlement company are considered eligible based on their debts and personal financial situation. "Eligible" usually means you have too much debt for any foreseeable income to handle, are unable to make minimum payments, and have indeed stopped making payments on the debt.

If you qualify, you'll enter into a contract with the debt settlement company. The contract will spell out the actual costs of the program (discussed below) and will include a series of standard disclosures. As always, when you sign anything, be sure to read it in its entirety. And if there's anything you don't understand, be sure to ask questions. The company then negotiates a plan with each of your creditors to pay a percentage of the outstanding debt. That percentage varies by case. Most settlements are 50 to 80 cents on the dollar, but creditors may occasionally go lower. Your accounts with these creditors are effectively closed; you may be allowed to keep or obtain one credit card for emergencies or other purchases, like renting a car, that require a card. When the settlement company gets an agreement with a creditor, they (and you) get a settlement letter describing the terms of the settlement.

The Payment Process

Next, the debt settlement company works out a payment schedule that you'll adhere to, typically over a two- to three-year period based on the settlement sum. Money can be saved in your own bank account, or more typically with a third party payment processor or "money transmitter" firm, usually one of two firms specializing in this activity. The account, like an escrow account.

The debt settlement company gets information from the payment processor, and should give you online access to your debt settlement account with monthly statements. When sufficient funds are accumulated, creditors are then paid, and letters are exchanged confirming discharge from your debts. (Be sure to keep a file of all of your records.)

A Rating Hit

Your credit record will then be updated. In some cases, the company may be able to negotiate a more favorable wording for your credit record, like "paid" or "settled." According to Leuthold, however, companies "usually can't dictate what creditors will report." A settlement certainly won't help your credit rating, but it isn't as bad as bankruptcy. Your rating will suffer during the settlement period because payments don't go to the creditor until the lump-sum settlement has been accumulated. Once the settlement is handled and documented correctly, the creditors can't approach you for more.

Take Precautions

There are many advantages of debt settlement. First, it can help you avoid bankruptcy, which will allow you to rebuild your credit sooner. It also reduces your liability and provides peace of mind by doing away with further harassment by creditors. For many, it's the only solution. But be aware of the following when considering debt settlement:

• Cost: Debt settlement is a service, and you pay for it. There are two fee models: a flat, upfront 15 percent of the outstanding balance, or 25 percent of the reduced amount. Some experts recommend the latter because it rewards a better and faster settlement. You also need to understand how creditor fees and interest will accumulate during the settlement period.

• Tax liability: The IRS generally considers discharged debt to be income. You'll get a 1099 for the discharge amount, and will owe taxes on it.

• No guarantees: It's all up to the creditors, and "no deal" is a possible outcome. Also note that debt settlements don't work for secured debts -- mortgages, car loans, etc. -- where repossession, not settlement, is the remedy. (That said, in his March 4, 2008, speech, Fed chairman Ben Bernanke called on bankers to take a new look at settlement for mortgages.)
Finding Reputable Debt Settlement Firms - If you're already working with a satisfactory credit counseling agency, they may be able to handle a debt settlement for you, or refer you to a settlement company. If you know someone with a positive debt settlement experience, a personal recommendation is always good to follow.

http://www.creditalliancegroup.com/

Sign it Green with CreditAllianceGroup

2008-03-11T14:39:00.001-05:00

You’re signing green when you sign documents online with Credit Alliance Group instead of printing, faxing, mailing, and using courier services. It’s a small thing, but it’s as good for the environment as turning off a light or using your own coffee mug. And it adds up. We’re challenging ourselves and our customers to save ten million sheets of paper by using the web to sign documents of all types electronically, without paper. Every paperless e-signature has an environmental ripple effect. First there are the trees that won’t get cut down and can keep producing oxygen and absorbing CO2 greenhouse gas. Then there’s the prevention of pollution from paper manufacturing and the avoidance of resource use to transport trees and paper by truck or plane. And finally, secure online e-signing eliminates the need for additional planetary impact to print and overnight mail important documents.Ten million pages saved equates to approximately: 2500 trees, 56,000 gallons of oil, 450 cubic yards of landfill space, 595,000 kilowatts of energy, 1.04 million gallons of water