As the title says this article has a part one, which if you have not yet read, we strongly suggest you do so. In part one we discussed the legal basis for this process. We will begin this article on how it differs from debt settlement. A basic debt settlement program negotiates a lower payoff of the amount owed, by saving smaller affordable amounts each month. In a good program settlements average about 35% of the original balance. Note: The American Debt Enders settlement program also incorporates elements of debt invalidation. A 1099 is usually issued for the year in which the settlement savings occurred, meaning that taxes will be due on it. Note: I like to give you value for reading my articles so, know that IRS form 982 is available from the IRS for avoiding the taxes due on a settled account.

Again, as discussed in part one, Debt Dispute does not negotiate with creditors, it rather forces the creditor to prove that the debt is truly legally collectable. No taxes due on any money once the debt is invalidated or successfully disputed. Once all the consumers debts have been disputed and eliminated the next step is to clean up the credit report. Credit restoration is different than credit repair. Restoration takes a careful look at the consumers credit report to remove any remarks which should not be there and to make sure that ant debts which have been successfully invalidated are no longer present. A well crafted debt dispute program is the fastest way to a good credit report.

Can I get harassing creditor phone calls to stop. The answer is yes. Again, a well crafted dispute program will have this aspect as part of the program. However, we can tell little Johny to play nice in the sandbox and even punish him if he does not, but he still may not listen. Some people actually benefit in cash and large sums of it, if the creditor continues to call after you have followed the law and told them to stop. Again, a well crafted dispute program will have this as part of its program.

What happens if the debt collector simply says go jump in a lake, and ignores your requests for verification? This is an excellent question and one which is often asked. If the creditor does not respond, they have in fact violated your rights and invalidated the debt themselves. This is a home run for you.

What happens if the debt collector provides proof of the debt, and their right to collect it? While this is a rare occurrence, you are not charged any fee for the work done on your behalf for that debt, and your assigned attorney will come to a settlement on that debt.

What Happens If I get sued? Sometimes debt collectors do not respond and they may even be as bold as to file a lawsuit against you.  Because this action and many other actions against you are violations of federal law, we have an organization that will assist you in holding the debt collector responsible which usually results in the suit being dropped and the alleged debt forgiven.  The aforementioned process is done outside of court through notification and negotiation.

In conclusion, if you are facing a debt situation and need help through a debt relief program, may I suggest you contact us for a free consultation. Another very awesome feature of this program is that it is about half the cost of a settlement program.

Yours Truly,

Steven Ciantro
Consumer Advocate
American Debt Enders
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