|
Home | Debt-Elimination Program | Get Started Today | FAQs | Contact |
Frequently Asked Questions & Answers
Who is the Bye2Debt?
Bye2Debt is a marketing company that started as a counseling organization
in June 2001, giving our clients alternatives to solving their debt dilemma with
benefits far beyond their expectations. We have the outstanding advantage of
marketing for several different companies who serve as our negotiation firms. We
also represent a number of different products and services that are designed to
assist our clients with many different financial needs. We specialize in
designing our products and services around our client's individual needs. From
our corporate headquarters in Somerset, Pennsylvania, we represent clients from
Hawaii to Maine and all points in-between.
Back To Top
Who is a candidate for the program?
Most people qualify as applicants for the program. It is the responsibility of
your counselor to review your financial situation and determine if you are
eligible. A tarnished credit history will not disqualify you from the program.
At the same time, many people who are still current with their payments and have
a good credit history are under extreme financial stress and may be eligible for
the program. Corporate underwriting within 48 hours of receiving your returned
completed packet always makes the final decision.
Back To Top
Does Bye2Debt keep my information confidential?
We are committed to maintaining complete confidentiality. Your information will
not be given nor sold to anyone except those authorized by you to receive
information on your behalf. We will advise your creditors that you have an
agreement with our firm to assist you with your financial strategy.
Back To Top
Can I include all of my debts in your program?
We only work with unsecured debts on the Debt-Elimination program. We do not
negotiate nor work with secured debts, mortgages, automobile loans, federal or
state taxes, or judgments attached to some sort of property, etc.
Back To Top
Will I still be able to use my credit cards?
No. Since the banks are giving up half or more of the money you owe, they will,
of course, discontinue your credit privileges. You are not allowed to keep a
running balance on any cards because all of your creditors have access to your
entire credit history and financial data through the credit bureaus. If you have
one or more unsecured accounts being paid on a monthly basis then all of your
creditors will want to be paid as well. If you continue making payments to
select creditors, the negotiation process will be drastically hampered and an
acceptable settlement next to impossible to achieve. We recommend that you
obtain a debit card attached to your checking account or keep one credit card
with a zero balance for emergency purposes only.
Back To Top
How long will it take to be debt free?
The length of time necessary for completion of the program varies from case to
case and will depend on the availability of funds to settle accounts. We strive
to set the time in as few months as possible. The time frame will be discussed
during the free consultation with your counselor after he/she has an overview of
your circumstances.
Back To Top
How do I handle creditor calls when my accounts are delinquent?
You will be provided a Creditor Call Log to record all calls from creditors. You
will also receive a phone script to read to your creditors with instructions for
them to communicate directly with us, your contracted ATTORNEY IN FACT, from
this day forward. If you follow our instructions regarding the changing of your
phone number, most of the calls will cease. However, a few may continue to call
and we will inform them of your rights under the 1977 Fair Debt Collections
Practices Act. If creditors call you at work we will instruct them that it is
illegal to continue calling once they are asked to stop. It is important that
you record each call and forward the call log to us on a weekly basis. The more
information we have regarding creditor calls the quicker we can educate your
creditors regarding the program. NEVER carry on a conversation with your
creditors and DO NOT discuss with them the details of the program; let your
Negotiator do the talking for you.
Back To Top
What happens to my credit?
Once a debt is settled, the settlement is reported to the credit bureaus.
Settled accounts are positive compared to bad debts or bankruptcy. In some
cases, especially with clients who have pristine credit before starting the
process (which are rare), the credit rating may decline on the front end until
the debts can be cleared up, whereupon the rating will improve again. But most
clients experience an overall improvement in their credit file once the
settlement has been completed. There are also several useful techniques for
self-repairing you credit later on. Of course, credit is an important thing to
have, but obviously your first priority should be to clear up your debts and get
back on your feet financially. We also have a company that we work closely with
that can help restore your credit rating. Please ask your counselor for more
information regarding the company and the process if this is something that
interests you.
Back To Top
How does the debt negotiator get paid?
Good debt negotiators charge a fee that is based on the amount of savings they
achieve. When the fee is structured in this way, the client is always in a NET
SAVINGS POSITION.
Back To Top
Is this legal?
Definitely! You have the right to appoint a third party to represent you in debt
matters. While we are not attorneys and we do not furnish legal advice, we have
settled debts with the smallest to the largest credit card banks in the nation
on behalf of our clients. The service we perform is legal in all 50 states.
Back To Top
What are the tax consequences?
Banks have the right to report canceled debts exceeding $600 to the IRS and you
are supposed to report the same as income on your annual tax return. However,
our experience is that most will not. The IRS permits you to write off any
income from canceled debts up to the amount by which you were insolvent at the
time. So unless you have a positive net worth, which is highly unlikely if
you're deep inside debt, then you ordinarily won't have to pay taxes on the
forgiven amounts. We suggest you consult your CPA if you have any questions.
Back To Top
Can my wages be garnished?
A common tactic used by aggressive debt collectors is the threat of wage
garnishment. If you are already struggling financially, nothing is scarier than
the prospect of having money taken from your paycheck without permission.
Collectors try to make it sound like this will happen on your very next payday
if you don't send a check immediately. This, quite simply, is false. The
creditor first has to sue you, obtain a judgment and then file for a garnishment
action. See Question 5 above. If you are willing to work with your creditors
through your negotiator, all this can easily be avoided.
Back To Top
Can I do this myself?
Certainly, but I cannot imagine why you would want to! Doctors don't operate on
themselves, why would you? Your creditors are banking on the fact that you do
not know your rights and that you are not knowledgeable in the collections
process. We have watched many individuals attempt negotiating on their own only
to be taken advantage of by the creditors. Remember, we are trained
professionals and will not fall prey to the creditors. We know their tactics,
which is why YOU want to hire an expert. Any discounts you achieve on your own
will not be as deep as those obtained by a professional firm, and you will spend
countless frustrating hours in the process.
Back To Top
How can I protect my assets?
DO NOT keep money in the same bank that you have an outstanding debt with. They
can seize it. We strongly recommend that you homestead your home to protect
against liens the creditors may attempt to put in place. This is not a common
practice by them, but is a last resort in some cases as an attempt to collect on
the debt. You will know they are coming way before it gets to this point so make
sure you are in contact with us and inform us of ANY legal notices made known to
you. We will counsel you on what to do next.
Back To Top
Is it possible to put more money into my savings account than what I
commit to?
Yes, the faster your funds accumulate in your savings account the quicker we can
negotiate and settle your accounts. Lump sums and/or increased monthly payments
will enhance the program and you will achieve your goal of becoming debt free in
a shorter length of time.
Back To Top
When will my negotiator begin working for me?
Work will begin as soon as the packet is completed and returned to our corporate
office for approval. Your negotiator will make immediate contact with your
creditors to start the communication process and provide them with your Limited
Power of Attorney. Once the setup fee and retainer fee is paid then your savings
account will begin to grow. When the funds are available the actual negotiation
process is set into motion. Your negotiator will notify you for approval when a
tentative settlement is reached and give instructions for transfer of funds.
Remember, you are in control of your money throughout the entire process. We
work for you, not your creditors.
Back To Top
What results can I expect from Bye2Debt?
You can expect a substantial reduction in the amount of debt you owe to
unsecured debt. While individual results may vary, our average settlement ranges
between 35 - 40 cents on the dollar. When our fees are figured in, you will
likely see final figures of about 50% savings and your credit score greatly
enhanced.
Back To Top
How can I best assist Bye2Debt when returning my package?
One thing we would like to stress is the importance of our having the
information we need in order to contact your creditors in a timely manner. There
are a couple ways that you can assist:
a. When you return this completed packet do not forget to send your most recent statements along with the packet ó not just the payment stub but the entire statement itself.
b. When you receive the bills from your next billing cycle following engaging our services and returning the package, fill out the back of those statements and use the change of address form to change the phone number as follows:
Your Name
700 Byers Road
Somerset, PA 15501
New phone number: 814-445-3970Mail them back to the creditor WITHOUT a payment enclosed.
Back To Top
What role do I, the client, play in the process?
The only thing we require of you is to regularly make your reduced monthly
payment to your savings account and to inform us when a creditor contacts you
instead of us as we instruct them to do. Our goal is to have all of your
creditors stop calling you and start dealing directly with us, BUT we need your
cooperation. We will send you the proven script to read and then end the call.
Then keep us informed on a weekly basis of the calls you receive. If you follow
our instructions we can work together and be successful in reaching our goal of
eliminating your debts in a short amount of time.
Back To Top
How do I contact you if I have a question about the negotiation progress?
You can either email or call us at the Bye2Debt for assistance with your
questions. We prefer emails and you will normally receive a reply within 24
hours. All of the necessary contact information will be included in your packet.
Back To Top
|
Home | Debt-Elimination Program | Get Started Today | FAQs | Contact |