What Isn't Eligible for Debt Negotiation?

Save with Debt Negotiation

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If you successfully complete our program, it’s possible that you’ll enjoy these benefits:
	Settle your debts for less than you owe
	(read here for full details about how much you can expect to save)
	Resolve your unsecured debts in 18 to 60 months
	(read here for full details on how long our program lasts)
	Backed by a Money Back Guarantee on Service Fees
	(read here for full details about our money back guarantee)

Student loans, military accounts

Student loans are generally federally-secured. In other words, if you do default, the federal government can levy your bank account or seize your tax returns to make up for the balance that is owed. Even private student loans are almost impossible to settle now because the bankruptcy laws changes in 2005 made it so they could no longer be discharged in a Chapter 7. Since our leverage is, “Take this settlement or our client may file bankruptcy,” debt negotiation is not a suitable option for this type of debt.

Secured debts

Since mortgages and car loans are secured by property, all of the negotiating power rests in the creditors hands. After all, a settlement is pointless when they can just take the property back if you refuse full payment. Creditors only agree to debt reductions when it is in their financial self-interest to do so.

Taxes

Much like student loans, this isn’t eligible for negotiation because it is federally backed. Unlike student loans, however, tax relief is available through an offer in compromise---an agreement between the tax payer and the IRS resolving the debt for less than the total amount owed. Much like with consumer debt settlement, an offer in compromise is attractive to the IRS when there is doubt as to whether they’ll be able to collect the full balance from a tax payer.

Pay Day Loans

Due to the very high interest rates that are charged on payday loans, debt negotiation is not a cost-effective method for consumers who owe this sort of debt. Since you have to fall behind in order for settlements to be reached, the late fees and interest charges will almost always negate any savings that you may realize.

Credit Unions

Credit unions are not policed by the same regulations that larger national banks are, which changes the nature of negotiation. Moreover, since credit unions are typically local, it is difficult for any settlement company to gauge beforehand any likelihood of success.

If you’re interested in discussing whether debt negotiation is the right program for you, please feel free to talk to one of our consultants at (877) 274-1260, or you can fill out a form and we’ll contact you as soon as possible.