Debt Relief Debt Relief

Putting It All Together

Debt Relief Overview

Here is our debt relief process in a nutshell:

  1. Stop (for whatever reason) making payments to your creditors.
  2. Protect your assets.
  3. Start repairing your credit.
  4. Start saving all the money you can.
  5. Respond to all dunning letters with a dispute and verification/validation request.
  6. Document all communications along with any FDCPA violations.
  7. Sue or threaten to sue a debt collector if your rights are violated.
  8. Respond to lawsuits with the required information and within the timeframe specified.
  9. Settle if you can't shake a lawsuit.
  10. Continue to repair your credit.

Topics like dealing with lawsuits, protecting assets, and repairing credit are covered in separate sections of this website, but I've included them here to round out the process so you can see it from start to finish.

For a more detailed look at the process, check out the Roadmap section of the website.

It is important to note that there are only two ways for a creditor to collect money from you:

  1. Sue you, and win, and find any assets, income, or bank accounts, and enforce the judgment. OR
  2. You voluntarily pay them.

Number one above costs debt collectors a lot of money with no guarantee they will get a return on their investment. As a rule, those who default on their unsecured debt don't have much to collect on in the first place. With over 80% of judgments going uncollected10, you can see why most debt collectors don't bother suing—the margins are very slim. Instead, most debt collectors use scare tactics, guilt, intimidation, shame, and coercion to collect the majority of their money. Those tactics are cheap, and work on a large percentage of the population.

That's why they go after low-hanging fruit.

Your goal is to become high-hanging fruit. My goal is to help you. Every technique and strategy outlined in this program is designed to move you higher up in the tree!

What debt collectors don't want you to know is that there is actually very little they can do to you when it comes to unsecured debts. They know it. And now you know it.

Now, this is not to say that if a debt collector receives a judgment against you they cannot garnish your wages, put liens on your property, or take money from your bank accounts because they can do all of these things. They can also charge post-judgment interest and may even be able to renew any judgments.

That's why we will also teach you how to protect your assets and fight creditor lawsuits.

Finally, by understanding your rights under the FDCPA when (notice I didn't say "if") they do harass and intimidate you and otherwise violate your rights, you can identify and legally document these violations and use them as leverage to potentially zero out your accounts and update your credit report. If you don't understand your rights go back and read that section. Knowledge is power and knowing your rights is the first step towards gaining that power.

Now, back to the process:

  1. First, you stop (for whatever reason) making payments and save as much money as you can. Within a short period of time ...
  2. Original creditors will start calling. You can answer the phone if you like, or just let it go to voicemail.
  3. At some point the original creditor is likely to offer a settlement. It is up to you to decide whether to take it or leave it. If you want to try settling the account on your own, check out the debt settlement tutorial in the Roadmap section of the website. You may also consider enlisting the help of a debt settlement professional. You can get a referral to a trusted and accredited negotiation professional on our homepage.
  4. Occasionally an original creditor will sue. If that happens, you may consider using some of the money you've saved to settle the account, consult an attorney, or enroll in our Lawsuit Defense Partner Program. After reading the section on Asset Protection you may find that you are actually collection proof and a judgment is of little consequence to you.
  5. Original creditors will usually write off the debt after six months and debt collectors will take over. Answer the phone, assert your rights under the FDCPA, document all calls, listen closely for violations and never, ever acknowledge the debt, make a payment (unless settling the account), or give out any personal information. If you prefer, send a certified letter telling them not to call you. I recommend you go violation fishing, but the choice is obviously yours.
  6. Settle if you choose to, don't if you don't. The benefit of settling the account is that debt collection efforts stop and you can usually have your credit report updated to "paid as agreed," or have the tradeline removed altogether as part of the settlement agreement. The choice is always yours, but I don't recommend settling unless you have to.
  7. Wait for the statute of limitations to expire and you're debt free!
  8. Finally, continue to repair any damage to your credit. The process of credit repair really should start once the original creditor writes off the debt. The older the debt, the less likely it is to be reinserted if you have the negt any downside to starting sooner than later.

10. The Kaulkin Report; 5th Edition

> When Will Your Debts Be Eliminated?
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