FAQ's
Frequently Asked Questions
General information only. Nothing on this page is legal or tax advice, and answers may not reflect the rules in your state.
Debt Consolidation
No. Consolidation reorganizes what you already owe into a single payment structure, often with a clearer payoff date. The balance still has to be repaid or resolved. What changes is the number of payments you manage and, in many cases, the total monthly outflow.
Qualification depends on the type of debt, the total balance, your income and your state of residence. Unsecured debts such as credit cards, personal loans and collections are the most common fit. A minimum of $5,000 in debt is generally required, and some services are not available in every state.
It can, in both directions. Opening a new account or renegotiating terms is reported to the bureaus, and scores often dip early in a program. As balances resolve and payments become consistent, many people see gradual recovery. Your specialist should explain the likely short-term impact before you enroll.
Bankruptcy is a court process with long-lasting public record consequences. Consolidation and settlement are private arrangements between you and your creditors, or through a program that negotiates on your behalf. Bankruptcy may be the better route in some situations — that is a decision for a qualified attorney, not for us.
Tax Debt Relief
Sometimes. The IRS has formal programs, including installment agreements, penalty abatement and the Offer in Compromise, for taxpayers who meet defined financial criteria. Eligibility is based on your income, expenses, asset equity and ability to pay — not on negotiation skill.
You submit a detailed financial disclosure and a proposed settlement amount. The IRS calculates your reasonable collection potential and compares it to your offer. If accepted, you pay the agreed amount and remain compliant with filing and payment rules for a set period. Most offers require thorough documentation and take months to resolve.
There is a 10-year statute of limitations on collection for most assessed tax, running from the assessment date. However, several events — bankruptcy, pending offers, certain appeals or time abroad — can pause that clock. Waiting it out is rarely a reliable strategy on its own.
Credit Card Debt Relief
Portions of credit card balances are sometimes resolved for less than the full amount, usually when an account is significantly delinquent and the creditor prefers a partial recovery. Forgiveness is never guaranteed, and forgiven amounts may be treated as taxable income — a question for a tax professional.
Outcomes vary widely by creditor, account age, balance size and your documented hardship. There is no standard percentage, and any company quoting a guaranteed figure before reviewing your accounts is overpromising. Individual results vary and are not guaranteed.
The account moves through late reporting, then charge-off, then collections, and the creditor may file suit, which can lead to a judgment and wage garnishment in some states. Interest and fees continue to accrue along the way. Acting earlier almost always leaves more options open.