American Debt Free Foundation Debt Settlement Program

Below is a description of how the program works



Who is qualified for our program?

American Debt Free Foundation’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.

1. Who is NOT qualified for our program?

American Debt Free Foundation does not advocate that any person default on their debts. This program is designed to negotiate debts for people who do or do not have reasonable means to pay off their debts.

2. How do you apply?

Complete the online form and you will have access to membership forms.

3. Who can join American Debt Free Foundation’s program?

American Debt Free Foundation do it yourself debt settlement program is for everyone. Not just if you are in hardship. This program is for people who:

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

4. Does Debt Settlement have a negative impact on my credit?

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, but 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.

5. Can I still use my credit cards?

Yes. All credit cards will be active depending on how you settle your debt. Please consider that sometimes you might have to cancel your cards until you can re establish your credit

6. What will I pay for your services?

American Debt Free Foundation has a $99.95 membership fee as well as other options to upgrade your membership. Most other companies charge a fee of 15% which is calculated based on the total amount of debt that an individual brings into the debt settlement program.

Our Do it yourself program requires only a onetime payment or upgrade to 2 other options. All costs are fully disclosed and you are required to sign up for membership before you commit to our program.

7. Can I be sued?

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.

8. Can American Debt Free Foundation stop my creditors from calling?

NO. Your original creditors have every right to try and contact you in order to collect a debt. However, our program has 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 go to: Fair Debt Collection Practices Act.

9. Can creditors garnish my wages?

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.

10. Can't I negotiate my debts with my creditors on my own?

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.

11. What are the tax consequences?

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.

• Credit Cards
• Unsecured Loans
• Unsecured Personal Loans
• Unsecured Personal Lines of Credit
• Collections, Autos in Repossession
• Home Loans / Mortgages
• Auto Loans / Student Loans
• Government Loans
• Lawsuits, IRS Debt/Taxes
• Secured Debts / Medical Bills