Q. Who is qualified for our program?
Q. Who is NOT qualified for our program?
Q. How will TransDebt settle my debts?

Important facts you need to know about Debt Settlement.

Q. Who can join TransDebt's program?
Q. Is bankruptcy a better option for me?
Q. Does Debt Settlement have a negative impact on my credit?
Q. Can I still use my credit cards?
Q. What will I pay for your services?
Q. Do you guarantee that you settle all of my debts?
Q. Can I be sued?
Q. Can TransDebt stop my creditors from calling?
Q. Does TransDebt repair my credit?
Q. Can creditors garnish my wages?
Q. What are the tax consequences?
Q. Can't I negotiate my debts with my creditors on my own?

Q. Who is qualified for our program?
A. TransDebt's debt settlement program is only for people facing financial HARDSHIP. This means people who are late on paying their debts, have little or no ability to pay their debts in the future and are facing a possible bankruptcy.
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Q. Who is NOT qualified for our program?
A. TransDebt does not advocate that any person default on their debts. This program is not designed to negotiate debts for people who have reasonable means to pay off their debts. If you have the ability to pay your debts in the normal fashion, then you should honor your debts and do so. This program is NOT for people who have high credit ratings and can meet their monthly debt obligations.
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Q. How will TransDebt settle my debts?
A. You will be asked to put aside and save a set amount of settlement funds on a monthly basis. This amount will be determined in your initial analysis based on total amount of debt and will be in line with your income and expense budget. Each person's situation is different and the negotiation process will begin at different times depending on the amount of your debt. Once the creditors agree to a settlement amount, we will present this offer to you. If you approve the settlement, we will instruct the creditor to fax over the 'settlement offer' in writing. We then have a three way recorded conversation with you, the creditor and us to settle the account. Debts can be settled in two different ways; one lump sum or a term settlement. One lump sum is just that, one payment and the account is paid. A term settlement is a settlement which is paid over an extended period of time until the account is paid. TransDebt then moves through each debt until all of your debts have been paid and you are debt free.

TransDebt strongly encourages you to read our Debt Settlement FAQ.
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Important facts you need to know about Debt Settlement.

Q. Who can join TransDebt's program?
A. TransDebt's debt settlement program is a hardship program. This program is only for people who:

• have a financial hardship
• are late paying their unsecured debts
• have no ability to make payments in the future
• have bankruptcy as their only other option

Examples of qualifying hardships are a loss of income, medical emergency, death of a member of the household who provided financial assistance, or a divorce.

If you are currently meeting your monthly debt obligations and are able to continue to do so, then our Debt Settlement program is NOT for you.
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Q. Is bankruptcy a better option for me?
A. Anyone considering our program should also contact a bankruptcy attorney to determine if their situation warrants filing for bankruptcy. Using the Debt Settlement process does not guarantee that you will not have to file for bankruptcy in the future.
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Q. Does Debt Settlement have a negative impact on my credit?
A. YES. Your credit score will decline due to entering this program. How much it will decline depends on your original circumstances. Most of the accounts you place into negotiation are likely to "charge off", which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. Settled accounts are positive compared to unresolved delinquent debts or bankruptcy. After all the debts have been settled and paid, the credit score should begin to improve since the negative items have been resolved. A high credit score is desirable to have for yourself. However, if you have a financial hardship and are unable to pay your debts, then your first priority should be to pay your delinquent debts and get back on your feet financially.
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Q. Can I still use my credit cards?
A. NO. All credit cards in the program will not be active and you will not have credit privileges. Any cards you DO NOT put into the program should not be used. This program is for you to get out of debt.
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Q. What will I pay for your services?
A. TransDebt has a 15% fee which is calculated based on the total amount of debt that an individual brings into the debt settlement program. This program requires one to three down payments followed by small monthly fees paid throughout the first 18 months of the program.

All costs and fees are always fully disclosed and are you are required to sign for approval before you commit to our program.
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Q. Do you guarantee that you settle all of my debts?
A. NO. There is no guarantee that your creditors will negotiate with us or that your debts will be reduced.
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Q. Can I be sued?
A. YES. Your creditors certainly have the right to sue to recover their money. But usually the purpose of the lawsuit is to force a settlement on the matter. In our experience, most creditors would rather not go to the expense of suing and simply try to negotiate a settlement.
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Q. Can TransDebt stop my creditors from calling?
A. NO. Your creditors have every right to try and contact you in order to collect a debt. However, we have been successful in eliminating most harassing telephone calls. If your account is in collections; collections agencies have to adhere to the FDCPA Guidelines. If you would like to learn more please read Fair Debt Collection Practices Act.
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Q. Does TransDebt repair my credit?
A. NO. A company cannot remove legitimate negative items from your credit report. Negative items will remain on your credit report according to the conditions imposed by the credit reporting agencies. The goal of a Debt Settlement program is to settle your delinquent accounts. When a delinquent account is settled this is reflected on your credit report. A settled account is better than an unresolved delinquent account. Your credit score should improve after successfully completing our program. Once these debts are paid your debt-to-income ratio should improve. Debt-to-income ratios are not part of a credit score however; they are an important measurement by which lenders evaluate applicants for auto and home loans.
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Q. Can creditors garnish my wages?
A. YES, however this is can be a long process for the creditors. The creditor first has to sue you, successfully obtain a judgment, and then file for a garnishment action. If you're willing to work with your creditors, wage garnishment can normally be avoided.
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Q. What are the tax consequences?
A. Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return. However, the IRS permits you to write off any "income" from canceled debts up to the amount by which you were "insolvent" at the time. You need to consult your own tax advisor for advice specific to your situation.
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Q. Can't I negotiate my debts with my creditors on my own?
A. YES, you can negotiate your debts with your creditors on your own. As a matter of fact if you successfully negotiate a debt it may cost you less in the long run to use this approach than to use TransDebt's service.

You should note however, that the Debt Settlement process can be a long and complex process for the average consumer. Our debt negotiators have the skills and knowledge of how your creditors negotiate and they have many years of experience negotiating the largest debt reductions. You don't have to spend all of the time and effort trying to negotiate with your creditors and you can rely on our experience to get the best debt reduction possible for you.
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