Debt Resolution

What is debt resolution?

A Debt Resolution Program, sometimes called a Debt Negotiation Program, can be an effective strategy for anyone who has experienced a financial hardship such as a divorce, job loss, or a significant reduction of household income or medical debt resulting from a serious accident or illness. If you are currently burdened with a large amount of credit card debt and you are struggling to just make the minimum payments on your credit cards each month, a qualified Debt Resolution Program may be a very good option for you and may even help you avoid filing for bankruptcy.

How a debt resolution program works

In a qualified Debt Resolution Program, a financial consultant will review your current situation and evaluate your income and expenses. Once your consultant has a clear and detailed picture of your finances, we will help you build a budget that will allow you to save money each month that will be used to negotiate with your creditors to reduce the outstanding balance on your credit card accounts and resolve your debts for less than you currently owe, and on a payment plan you can manage. We help you review your current financial situation in order to identify ways we can help you better manage your budget and find ways to help you save. Depending on the amount of debt you enroll in the program, and how fast you are able to save money, many of our clients are able to complete the program in 24-48 months. This is a way to pay off your debts significantly sooner than by just making the minimum payments. In our Debt Resolution Program, you are never charged a fee until we are able to reduce the amount of debt that you owe.


Sample Disclosure Statement

Clients who make all their monthly program deposits typically pay Start New Settlement, LLC (“Start New”) between 20% and 27% of the total amount of debt the client enrolls into Start New Settlement’s debt settlement program, depending on the state in which a client resides.  Start New Settlement does not charge its clients any fees until Start New Settlement successfully settles one or more of the client’s enrolled debts.  In the event Start New settles one or more—but less than all—of a client’s enrolled debts, Start New only charges the customer a fee based on the amount of enrolled debt actually settled.  

The average client’s program length is between 24 and 50 months, although in some cases program lengths may extend beyond 50 months.  Not all clients are able to complete Start New’s program for various reasons, including a client’s ability to save sufficient funds.  Start New’s program length estimates are based on Start New’s past experiences with clients, creditors, and debt collectors.  Everyone’s circumstances are different; the characteristics of a client’s individual program may vary from what is typical.

We do not assume our clients’ debts, make monthly payments to creditors on clients’ behalf, or give clients tax, bankruptcy, accounting, or legal advice.  We do not provide credit repair services.  Start New’s services are not available in all states.  Please contact a tax professional to discuss potential tax consequences associated with settling debts for less than full balance.  Please read and understand all of Start New’s program materials prior to enrolling with Start New.

The use of debt settlement services will likely adversely affect your creditworthiness.  Utilizing debt settlement services also may (a) result in the balances of your enrolled debts increasing due to the accrual of fees and interest on your accounts and (b) in you being subject to collections actions or lawsuits brought by your creditors.

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