F.A.Q.’s

The actual cost of your program can be influenced by a variety of factors, such as your particular creditors, the concentration of debt with given creditors, the degree of delinquency in your payments when you enroll in our program, the monthly amount you are able to deposit in your settlement savings account, etc. If you call us for a free consultation appointment, we will explain how these factors apply in your specific circumstances. You can reach us toll free at 1-800-794-9700.
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What is the difference between unsecured debt and secured debt?
The creditor of an unsecured debt relies only upon your promise to repay and that of any co-borrowers and/or co-signers you might have. The most common types of unsecured debts are credit cards, department-store cards, medical bills, and personal (signature) loans. The creditor of a secured debt relies upon collateral or security for a secondary source of repayment if you fail to repay. The most common forms of secured loans are home loans, such as first mortgages, 2nd notes and equity lines-of-credit, car loans, boats, and RVs. Once default takes place, the creditor’s recourse is usually to foreclose on a home, or repossess a vehicle. A kind of quasi “secured” loan is a student loan. It is really a “guaranteed” loan, but the guarantor is usually the State or Federal Government. Because the lenders can get guaranteed repayment, they will not negotiate the settlement of student loans.
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What kind of debts can’t be settled?
Secured debts and guaranteed debts cannot be settled. The reason for this is that creditors who are secured or guaranteed lack any motivation to settle debts for less than 100 cents on the dollar. If a debtor defaults, the secured lender expects to recover the full amount due by seizing and selling the collateral that secured the loan. If there is a shortfall the remaining amount due becomes unsecured debt, which most lenders will then negotiate to settle e.g., an automobile is repossessed but cannot be resold for the full loan amount due, creating a deficiency balance that is unsecured. If a debtor defaults, a guaranteed lender looks to the guarantor to repay the outstanding balance in full e.g., student loans and the Federal Government, auto loans with a cosigner, SBA business loans and the Small Business Administration.
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Will I continue receiving calls and letters from collectors and my creditors?
Yes. However, the number usually declines over time. You can accelerate the change by referring all such communications to Provanta and by refusing to become engaged on phone calls from creditors and collectors. Dealing with them is our job as soon as you have enrolled in our program.

You have the legal right to tell creditors and collectors to stop contacting you. Most will simply comply with your demand. Some may not temporarily, but usually we can secure their cooperation by reminding them of their obligations.
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Do I have to include all of my debts in your program, or can I give you only the ones I want you to settle?
You will obtain the best results by including all of your unsecured debts in your program. Otherwise the creditors in your program will be reluctant to accept less than one hundred cents on the dollar if they see in your credit report that you are making current payments to any other creditor. The only exceptions to this would be if you are required by your employer to use a credit card for reimbursable business expenses, or if you must use a credit card to purchase raw materials in the operation of your business.
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What if I am unable to make a debt settlement program payment when it is due?
Making timely payments is key to having a successful debt settlement program. However, we understand that unforeseen circumstances might occasionally interfere with your ability to make a payment for your debt settlement program when it is due. If you have a legitimate reason for delaying or missing a payment that is an exception and not a recurring expectation, we will do our best to accommodate you while we continue to work with your creditors toward settling your debts.
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Will I be debt free when I finish your program?
All accounts in your program that we have settled for you will then have a zero balance, and you will be free of any further obligation to those creditors.
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Will debt settlement resolve all of my accounts?
Usually, yes. But realize that debt settlement is a negotiation process, and the nature of negotiation is that both parties have options. Creditors have the option of not agreeing to a settlement. However, in our experience this would be relatively unusual because it is usually a better option for a Creditor to offer some alternative. We are confident of this because we have been conducting such negotiations for over a decade, for thousands of clients, tens of thousands of accounts, and millions of dollars of debt settled.
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How about interest charges and late fees on my debts?
These charges will continue to accrue. However, we negotiate to settle not only the original principal amount of your debt but also any interest or penalties that may have accrued as well.
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If my spouse or former spouse is named on some of my accounts must he/she be included in my program?
Ordinarily yes, if they want to avoid being pursued independently by your joint creditors when you enter a debt settlement program, because your creditors probably will not agree to release them, even if you are separated or divorced. Although this may sound like a difficult problem, usually we can work out a means to proceed with a debt settlement program and to accommodate both parties.
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How will debt settlement affect my credit?
A credit score is composed of a number of factors. Payment history is one of them. If you have a history only of making timely payments before entering a debt settlement program, debt settlement most likely will affect your payment history adversely. Other factors beyond your payment history affect your credit score, as well. For a complete description of these you can click on this link: MyFico and you will be taken to the company that created and defines the current standard for consumer credit scoring.
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Is this like debt consolidation?
No. Debt consolidation is merely converting several or all of your debts into a new single debt that represents the total of them all, which you still must repay. Debt consolidation loans ordinarily are secured by the borrower’s home, so the net effect is to transform your unsecured loans into secured loans, thereby putting your home equity at risk. With debt settlement the credit card accounts are not repaid, they are settled, once and for all, and your home remains unencumbered.

Moreover, many people who consolidate debt often end up with double the amount of debt they began with because they use the newly available credit on their credit cards.
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What about bankruptcy as an alternative?
Bankruptcy is the option of last resort. For this reason, it is not something that needs to be rushed into precipitously. Bankruptcy may not relieve all debts and it may require you to liquidate assets. Bankruptcy carries with it a significant social stigma, and its devastating effects on credit last up to 10 years or sometimes longer. Debt settlement is an alternative to bankruptcy.
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Why can’t I negotiate the settlement of my debts myself?
You can, but probably not as effectively as experienced professionals who specialize in such negotiations. Furthermore, you will be at a distinct disadvantage negotiating against your creditors who definitely are represented by professionals who have nothing at risk. They will expect to do better facing you than facing us, and therefore are likely to demand more of you than they will accept in a negotiation with us.
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What is your guarantee?
We guarantee that your total debt settlement costs, including fees paid to us, will be less than the amount of your debts settled or we will refund the difference to you, up to 100% of the fees we have received.
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