New Vision Debt Relief

FAQs

Q. Will this program make me absolutely debt free?

Our Debt Settlement Program is based on settling your unsecured debts such as unsecured personal loans, credit card debts, or medical bills. However, secured debts such as auto loans or mortgages, are out of our hands. But you will find that once you’ve completed our program, the money that you will be saving by no longer paying off unsecured creditors can be put towards paying off your remaining secured debts, stabilizing your finances once and for all.

Q. Should I put all of my credit cards in the program?

Generally, you should enroll credit cards that have a balance that is greater than $500. While you do not have to enroll all of your credit cards to qualify for the program, it makes negotiating with creditors more difficult if they find you are negotiating some accounts but not others.

Q. Who controls the bank account where I am saving funds for creditors?

You are the only person in control of the specialize bank account. Your account will be accessible through Global Client Solutions. For more information you can visit www.globalclientsolutions.com.  It is your money, and you are the authorized name on the account. We believe having a separate account will help you complete our program successfully, and makes it easier for us to deduct our program fees, while you keep track of your accumulated savings.

Q. How does this affect my credit?

If you do not make required minimum payments to your creditor you may be breaking the terms of your agreement with them and your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is true whether or not you have enrolled in a Debt Settlement Plan. Depending upon the condition of your credit report at the time of enrollment, a Debt Settlement Plan may have an adverse effect on your credit report and credit score. Our goal is to get you out of debt for the lowest cost, in the shortest period of time without declaring bankruptcy.

Q. Will I receive phone calls from collectors?

At New Vision Debt Solutions, we make it our goal to minimize the calls you receive from creditors by having them contact us instead. That being said, there are also state and federal laws that protect against creditor harassment, and we will assist you in making sure any violators are dealt with properly.

Q. Will I owe taxes on my forgiven debt?

A forgiven debt is considered taxable income. The IRS will expect you to pay taxes on any settlement at the end of the year. There are options available for certain hardships that may exempt you from paying these taxes using IRS form 982.

Q. Do interest and late fees accrue on my accounts?

Generally, until you reach a settlement with your creditors, your balance will continue to increase. Once your accounts are considered delinquent, interest and late fees are added on continuously by your creditors. Even when making the minimum payments, interest will accrue. With our Debt Settlement Program, we would negotiate reductions to your account balances that are substantially lower, even when accounting for the accrued fees.

Q. Could I negotiate on my own?

With something as important as your personal finances, the more professional assistance you have, the more likely your success. Like most tasks, you can do it yourself but, consider what your knowledge/experience in dealing with creditors is, as opposed to a team of qualified professionals whose prime focus is negotiating debt. Trying to balance your personal life, and becoming a your own debt negotiator over night can be time consuming and can lead one to give up on their case. The sooner you can begin to solve your financial crisis, the better, and with New Vision Debt Solutions you can be certain we will see your case through.

Q. Do you begin negotiating with my creditors right away?

Except when dealing with certain difficult creditors, we generally contact your creditors right away (typically within approximately 1-2 weeks of your joining our program) to let them know that we have Limited Power of Attorney and to request that future collection calls come to us and not you. The actual negotiation activity is typically very limited until you have saved up enough in your settlement account to make reasonable offers to your creditors. Most (but not all) creditors do not want to spend time negotiating an account unless they know there are funds available. The first settlement typically happens in month 6 to 9 of a client’s program (this varies greatly and depends on your monthly savings amount and the number of creditors you have enrolled in the program as well as the balance of each individual account). In some instances it may take more than 9 months before the first settlement is reached.

Q. Will my debts be sent to a law firm? Will this result in a lawsuit?

Creditors do have the right to send debts to third party collection agencies and/or law firms in order to collect a debt. If this happens, we will continue to negotiate on your account and will treat the debt as a priority creditor (meaning we will try to resolve it first, before moving onto your other accounts). Based on our actual experience, it is a small percentage of cases on which lawsuits are actually filed. When this does happen, usually the purpose of the lawsuit is to force a settlement. We will continue to negotiate to settle the debt, although the settlement percentages are often higher than typical “non-legal” settlements. If a lawsuit is filed before you have saved up enough funds to negotiate a settlement, we will seek to resolve the account by putting it on a long term payment plan for 100% of the balance. Please note, we are not a law firm and cannot provide legal advice or legal representation.

Q. Do you guarantee that you settle all of my debts for a certain percentage?

No. Every case is a negotiation, and there is no guarantee how the negotiations will wind up. Furthermore, the success of our negotiations is highly dependent on your ability to save a specified amount each and every month you are in the program.

Q. Will entering your program repair my credit?

No. We are not a credit repair company, and our goal is not to repair your credit. Our goal is to negotiate settlements at less than face value on your unsecured debts.