Frequently asked questions

Answer:

A typical debt resolution program typically takes 2-4 years to complete. The key factor in determining the program’s duration is the amount of money you contribute to it. You can only settle your debt when you have the necessary funds, underscoring the importance of building up your resolution account quickly. Missing payments to the program will hinder negotiations due to a lack of available funds. You can expedite the debt resolution process by adding more money to your account.

Answer:

Debt consolidation programs combine all your outstanding debts into a single, larger loan, often requiring collateral of higher value, such as your home. With this approach, you’ll still need to repay the entire principal amount and the interest on the new loan. Failure to make payments can result in the repossession of your collateral. In contrast, debt negotiation employs strategic techniques to significantly reduce your debt balance, enabling you to pay a smaller sum than your current obligations. The debt negotiation process usually completes within approximately 24 to 48 months, while consolidation can extend for a longer duration depending on loan size and terms.

Answer:

Our Dedicated Service Team will analyze your financial situation and work with you to determine an affordable monthly program payment amount based on your total debt, income, and expenses. If you meet the approval criteria, Remedy Finance will proceed to:

1. Set up a Special Purpose Savings Account for you at the program’s commencement.

2. Provide guidance on the recommended savings level for the Special Purpose Savings Account.

3. We will provide you with advice on building up enough savings in the Special Purpose Savings Account, which will be essential for negotiating resolution offers with your creditors. Once the Special Purpose Savings Account accumulates enough funds, Remedy Finance will:

1. Initiate contact with your creditors to initiate the debt negotiation process. Upon reaching a debt resolution with your creditor, Remedy Finance will:

1. Present the offer to you.

2. Thoroughly discuss the offer with you If you accept the resolution offer, we will have your creditor send a copy of the formal agreement to Remedy Finance and you in writing

Answer:

No, we do not make monthly payments to your creditors. Our primary objective is to negotiate your debt for a reduced amount compared to what you initially enrolled with. Your responsibility lies in making payments to your Special Purpose Savings Account, which will be utilized to cover negotiated debt resolution offers and our fees.

Debt resolution, also called debt settlement, offers a valuable solution for numerous individuals, though it is not the best fit for every circumstance. Typically, debt resolution plans are designed for individuals facing substantial financial hardship, making it difficult or nearly impossible for them to meet their required payments punctually. Instances of hardship leading to debt relief frequently involve medical emergencies, loss of income, or divorce, where bankruptcy may be the only alternative. However, if debt is manageable and simply bothersome, debt settlement may not be the most suitable solution.

Answer:

Rest assured, we do not charge any advance fees. Our fee structure operates on a flat, performance-based model, meaning we only charge when a settlement is successfully reached, and you approve it.

Answer:

The impact on your credit largely depends on your credit standing at the time of enrollment in the plan. Typically, if you fail to make payments to your creditors as per your agreement or settle debts for less than what is owed, your credit will be negatively affected while you work through and recover from your financial hardship. Nonetheless, it’s important to note that the credit impact is not permanent. As each of your accounts gets resolved, the creditor should report it to the credit reporting agencies, which could improve your credit profile in the long term.

Answer:

Yes, your creditors retain the right to sue you for debt recovery. However, lawsuits are typically used to push for a resolution of the debt. Based on our experience, creditors typically prefer negotiating a resolution instead of going to court. When you participate in the Remedy Finance debt resolution program, you will have skilled debt resolution consultants by your side.

Creditors typically report debts, whether cancelled or resolved, to the Internal Revenue Service (IRS) if the amount exceeds $600. As a taxpayer, you are obligated to report this amount on your tax return. However, the IRS allows you to deduct income from cancelled debts up to the extent of your insolvency during that tax period. For a thorough understanding of your specific tax situation, it is advisable to seek guidance from a professional tax advisor.