Debt Relief

Debt settlement, also called debt negotiation, may provide you with the much needed debt relief you seek. Whether it’s from credit cards or other unsecured debt, this debt settlement option may be able to help you:

• Make one simple monthly program payment that’s lower than your monthly minimum payments by half!
• Save you up hundreds and thousands of dollars overall by getting credit card companies to agree to reduce your credit card debt.
• Lower your monthly minimum payments by up to 50%
• Help you become totally debt free in a fraction of the time-often cutting months or even years from the time normally needed.
• Communicate with your credit card companies and/or collection companies.

Understanding Debt Settlement or Debt Negotiation

When you owe money to creditors, whether the debt is secured by collateral or unsecured debt, a creditor has the right to sue in court if you aren’t paying in accordance with the terms of your creditor agreements. Fortunately, most creditors, including most credit card companies, will agree to settle your debts for less than you owe, often for much less than you owe, because often it’s the most profitable strategy for them to use.

The bottom line: Credit card companies and other creditors want to collect as much as they can on debts that are owed, but they recognize that many people encounter financial circumstances that make it next to impossible to recover from debt.

People who are helped by debt settlement companies include those who have experienced a loss of a job, unexpected medical bills, illness, or other unforeseen circumstances that put a strain on finances.

Our company specializes in getting the facts on your personal debt situation, presenting those facts to the credit card companies, and negotiating with credit card companies to settle for much less.

Types of Debts that Can be Settled:

There are two types of debt: unsecured debt and secured debt. Secured debt is a type of debt that is tied to an item of property, such as a house, car or land. Secured debt is not a type of debt that can be resolved with a debt settlement program. Unsecured debt, however, is a type of debt that is not tied to any item of property, and includes credit card debt, medical bills, personal loans, department store credit debt, and certain types of student loans. Any of these types of unsecured debt qualifies for our debt settlement program, where we negotiate with the creditor to reduce the balance owed, reduce interest rates, and/or eliminate late fees. Once the creditor and the borrower reach an amount they both can agree on, the borrower must pay that amount within a set period of time, at which time the debt will be considered settled or resolved. Our company will work closely with you to determine the repayment plan that works best for you.

What Makes Me a Good Candidate for Debt Settlement?

A debt settlement program is certainly not for everyone. Qualified candidates are those who have a legitimate financial hardship, which has caused them to fall behind on their payments to creditors, or will cause them to fall behind in the near future. Americapital Debt Consultants, LLC will not welcome anyone into the program that has the intentions of defrauding, deceiving, or swindling their creditors. We only represent consumers who are truly in need of our services and stand to significantly improve their financial situation.

Why should I use Americapital Debt Consultants, LLC to settle my debts as opposed to handling it myself?

Our experienced debt negotiators have established relationships with the creditors and collection agencies. We will be able to negotiate a better settlement with the creditors, which are usually averse to negotiating with the consumer directly. Our negotiators have extensive knowledge in Federal & State consumer laws & exercise the Fair Credit Reporting Act, Fair Credit Billing Act, as well as the Fair Debt Collection Practices Act to help settle your debt.

Who is holding my money while I’m waiting on a settlement?

Your funds will be held at Global Client Solutions, Inc., one of North America’s largest and most trusted escrow companies, in an FDIC insured trust account. This account will be opened in your name with you having ultimate control over its funds. The monies collected in this account get disbursed only at the time a negotiation is reached with the creditor and you agree with the settlement offer.

Do I have to include all my debts into a debt settlement program?

No. You may choose which debts you would like to enroll in the program. Your debt consultant will help you decide the best plan of action based on your current financial situation.

How Will Debt Settlement Affect My Taxes?

In general, in the United States, the IRS considers debt which is forgiven as income. This means if you borrow $15,000 on your credit cards and settle it for $8,000, the $7,000 difference is taxable as income since it is not repaid. However, you may be able to write off this income using IRS Form 982, the form is called Reduction of Tax Attributes Due to Discharge of Indebtedness. We highly recommend a quick call to your accountant or tax professional for further discussion. You may be relieved with what they have to say!

How do I determine whether I am solvent or insolvent?

In the worlds of business and finance, solvency is a term that is used to refer to the current level of financial stability associated with a company or individual. The term can also apply to the status of a particular area of finances, such as insurance, cash flow, or property. To be solvent is to be in a position where it is possible to honor all current financial obligations according to the terms and conditions related to each debt, while still having assets left over for other purposes.

Insolvency means the inability to pay one’s debts as they fall due and in normal cases it is bad to be insolvent, but when discussing paying taxes on forgiven debt this become a plus. An individual or business that is insolvent will usually have their forgiven debt excluded from their income, thus not being required to pay taxes on it.

How is debt settlement different from bankruptcy?

Bankruptcy is an option that is generally treated as a last resort. It will remain on your credit report for 10 years and you can be denied employment, state licenses, insurance, as well as tenancy of an apartment. Most importantly, you can be denied virtually any type of credit with a bankruptcy on your report. In addition, since the bankruptcy laws have changed recently, it is even more difficult to qualify for Chapter 7, the method of liquidating assets to eliminate your debt. You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition. Under Chapter 13 bankruptcy, your debt payments are simply restructured, meaning you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy. Debt settlement is an alternative to bankruptcy.