The purpose of providing you a section of the most Frequently asked questions is to provide clarity to questions you may have, or information to a question you may not think of. If you would like a further explanation to any of the following questions or explanations please feel free to contact us via email at our home office.

Can I use this program to get out of my financial obligations?

No! When a person approaches us and seeks out assistance it is because they can no longer afford to pay their monthly obligations. They have a desire to fulfill their financial obligations motivated by many factors including morals and honor. We do not, and will not suggest to anyone that you should stop making payments to those you have indebted yourselves too. Clients have told us they cannot continue on their existing course. These programs are offered so you can avoid bankruptcy if your attorney believes you can do so. These are an honorable alternative so you can fulfill your financial obligations.

Can Debt Mediation, Debt Management, Credit Counseling or Debt Settlement be used for any kind of debt?

No. These options can only be used to settle unsecured debt. Unsecured debt generally consists of credit cards, unsecured personal loans, and uncollected judgments. You cannot use debt Settlement or debt management programs with IRS Debt, Student Loans, or secured loans such as home and auto loans.

How long will it take me to resolve my accepted debts?

That is completely up to you. Depending on the program you qualify for the amount of time it can take (typically 12-50 months) to settle all of your debts in the program depending on the amount you owe, your income, and your living expenses. Usually, clients can complete the debt settlement program in about three years it takes about 4-7 years in a debt management program. Ultimately you control that time frame. Our goal is to assist you in becoming financially responsible in the view of your creditors in the least amount of time possible.

Who controls my money how and much will I have to save?

In a debt negotiation or debt settlement program you save money in a segregated account so a lump sum payment can be made to your creditor. The average attorney debt negotiation is 40%. That is, for every $1,000.00 accepted into the program the settled average is about $400.00 Your service fees are deducted from this account each month, according to the agreement that you sign with the attorney. The accumulated savings in the account are what is used to pay off the settled debts with creditors. The amount you save monthly will have different factors, such as the amount of debt and the time period of involvement in the program. While you participate in a debt settlement program, your creditor can add interest and penalties to the original amount of debt. Because there are no side agreements or pre-negotiated arrangements between the attorney and the creditors, if they settle for less than this amount then you keep the difference. If they negotiate for more, then it may cost a little more. Once again, this average based upon prior negotiation results. Results can and will vary from client to client based upon each person's situation.

Debt management & credit counseling consolidates all your monthly bills into one easy monthly payment that company will disburse your funds for you. Your monthly payment will be for a much shorter duration of time vs. making monthly minimum credit card payments for 20 year or more periods of time.

What happens to my credit?

Do you have a debt problem or a credit problem? Most people when realizing they can no longer afford to pay credit card minimums "which, oh by the way can last many years" understand they have a debt problem. YES, your credit score will decline when entering any of these programs. How much it will decline depends on your original circumstances. However, once this debt is settled, or paid off this is reported to the credit bureaus. Settled or paid off accounts are positive compared to unresolved delinquent debts or bankruptcy. As to how long this takes is up to you. Why? because you are in control of the length of this program. After all the debts in the program have been settled and paid, the credit score may begin to improve since all of your negative items have been resolved. A high credit score is desirable to have, but if you have a financial hardship and are unable to pay your debts, then your first priority should probably be to pay your delinquent debts back to your creditors and get back on your feet financially.

Can you fix my credit?

No. We are not a credit repair service. Credit repair companies are subject to a completely different set of laws. Our service addresses the overwhelming problem of debt. After completing the program, some people find a natural by product of reducing debt ratios maybe an increase in ones credits score.

How much does your program cost?

The cost of services provided are determined by the attorney, company or institution. Each of the providers of service are licensed in their specific profession. The services provided are at an affordable service fee equal to or less than an out of state, non-regulated telemarketing company.

Each individual's financial situation is unique and requires a unique program that is designed to meet both their long term goals and budget. With this in mind, the cost of the program is determined by 5 main factors:

• How much money you owe to individual companies, and in total.
• How late you are in paying your monthly minimums.
• Which companies you owe money to.
• How many companies you owe money to.
• How much you are able to save each month to pay off your debt.

Once we fully understand these variables the attorney can then give you an accurate assessment of which program would be suitable for you, estimate of what you will pay to have the service performed. This is why we offer a full debt relief consultation to all prospective clients. In the consultation we assess your financial situation, your financial hardship, and then submit this information to the attorney. This consultation and analysis that Fresh Start Law Group provides is free of charge and you are under no obligation to join the program. The goal of the programs is to have you pay off your debt with that creditor at an affordable amount agreeable to both you and your creditors.

Is it legal?

Definitely! You have the right to appoint a third party such as an attorney to represent you in debt matters.

What are the tax consequences?

In regards to debt negotiation, banks are supposed 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, 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 should consult your own tax advisor for advice specific to your situation. Although we are not licensed CPA'S we would be more than happy to refer you to some highly respected firms.

What about lawsuits, can I be sued?

Your creditors certainly have the right to sue to recover their money. Remember, if you would have originally chosen not to address your financial situation and seek outside assistance the creditor had the choice to pursue the same course of action. Meaning, in or outside our program a creditor can take action. Your participation in a debt settlement program does not shield or protect you from your creditor making threats, or taking action upon those threats. Although often threatened, lawsuits happen less frequently in debt matters than most people think. Some debtors fall behind, don't make any payments for years, and never hear from a single attorney. The purpose of the lawsuit is to force a settlement on the matter. In other words, the creditor is just trying to get paid. Accounts that have reached this stage can still be successfully settled, provided the client has sufficient funds at the time. Most creditors would rather not go to the expense of suing and simply try to negotiate a settlement most creditors are amenable to renewed payment arrangements in such a situation. The worst-case scenario regarding debt settlement is that a client might have to pay back the balance in full on that particular debt.

Can my wages be garnished or can they put a lien on my house?

A common tactic used by aggressive debt collectors is the threat of wage garnishment and liens on primary residences. If you're already struggling financially, nothing is scarier than the prospect of having money taken out of 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 State of Florida has very protective laws for its residents regarding wage garnishment for head of household, and homestead rules regarding home ownership.

Can I do debt negotiation myself?

Yes, but would you go to the hospital if you cut yourself and attempt to put your own sutures in? Some clients have attempted to accomplish the undertaking of debt negotiation by themselves prior to seeking out proper assistance and met with frustrating results. It can take an attorney who is also a skilled negotiator with years of experience to get the best results on your debt. You also lack leverage with your creditors. If you owe just $20,000 to a creditor why would they just allow you to pay a reduced amount? Can they, will they, perhaps? On the other hand if they negotiate with the attorney they will be able to recoup at least a portion of the money due them instead of a client claiming Bankruptcy . Again, this is just an example, but it demonstrates why an attorney can be far more effective compared to a do it yourselfer, or even a small debt negotiation company.

Can your company stop my creditors from calling?

NO. Your creditors have every right to try and contact you in order to collect a debt. Only an attorney can put an end to the abusive practices. 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.

Can I still use my credit cards?

All credit cards in the program will not be active and you will not have credit privileges with those cards.

Can you give me legal or tax advice?

Debt Settlement Florida are not attorneys. We cannot give you any legal advice. If you have any legal questions about your case, you should seek the advice of a licensed attorney employed by you and representing your interests only. There are laws that specifically addresses individuals in the area of unlicensed practice of law. The practice of law without a license is illegal. We will gladly refer you to a competent attorney or accountant if you desire.

Why should I choose debt solution over bankruptcy?

Filing for bankruptcy should be a last resort to solve your financial problems. An attorney is most qualified to make a recommendation as to the best plan of action in helping you accomplish your financial goals. Many think that bankruptcy is an easy way out, or is their only way out when, in fact, there are other alternatives. Filing for bankruptcy severely damages your credit for many, many years and should only be used after all other debt relief remedies have been explored. The bankruptcy process interferes with your desire in honoring your debts and settling with your creditors.

How is Debt Negotiation different from Debt Consolidation and Credit Counseling?

Debt negotiation. If you and your debts are approved, the attorney and his affiliate partners will negotiate with your creditor's total debt to an amount you can actually afford. The average settlement amount is less than 50% of the original amount of debt. The service fee is very affordable and the duration of time is about 18-50 months to complete the program.

Debt management & credit counseling involves consolidating existing debts into one easy payment and reducing interest rates down to an average 8-10%. Although an individual approval process takes place, just about everyone qualifies with DMP & Credit Counseling type programs. Typically with a Credit Counseling program lasts about four to seven years as opposed to debt negotiation that lasts about three years. Either option is an insignificant period of time compared to the standard 15-40 year period it can take making minimum payments only.

What guarantees can you give me?

All applications presented to the attorney undergo a thorough underwriting process. The purpose of this it to evaluate the probability of success in working with each creditor and suggest which program or service best suits your needs. An individual's case and each creditor is accepted or declined based upon the attorney's experience of prior successes and applicant's personal hardship situation. If the attorney has experienced positive results with a creditor in the past it is not a guarantee that we will in the future. These factors can include (but not limited to) internal changes of your creditors company policy, your creditor selling off the debt to another collection agency, an applicant's personal hardship situation changing, or an applicant's inability to complete the program terms successfully. Some factors have the potential of altering the final outcome of success that we desire for you, but have no control over.