Q & A - Questions and Answers

What is Debt Settlement ?

Debt Settlement is when we negotiate on your behalf with your unsecured creditor to accept a lump sum payoff for pennies on the dollar!

The amount of the settlement can vary from account to account, but it is normal to expect a settlement of 40% to 60% of the balance.

These are some of the conditions the accounts must meet:

• The account must be in your name
• The account must have a balance of $2000 or more
• The account must be unsecured (not secured with collateral) but we will handle remaining deficiency debt after repossession.
• The account must be a collection account (severely past due)
• The debt cannot be: Child Support, Taxes, Bounced Check, Utility Bill, Student Loan or Criminal Fine
• If the debt is an IRS Tax lien, and is $10,000 or more, we can refer you to a trusted IRS negotiation expert.

Does it Hurt my Credit? How will it Show Up?

• Yes, it may show as "settlement accepted on this account"
• Yes, the creditor may refuse to offer you new or continued credit

Note: It is a common myth that paying off an account will change it from negative to positive on your credit - it's just not true. But don't worry, once the settlement process is complete, our audit and verification services can pursue the removal of the settled accounts.

Debt settlement is the fastest way out of debt and generally takes 2 to 4 months, sometimes longer. Should you decide that debt settlement is an appropriate option for you, Legacy can help. Contact us and we can start you on the road to financial recovery.

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