Will I be completely debt free when I’m done?

When you are done with our program you can be completely out of unsecured debt (credit cards, medical bills, unsecured personal loans).  However, because we do not help with secured debts, you may still have debt with those accounts.

How is the service fee paid? Is it paid upfront?

Every month you will deposit money into a savings account to build up the money needed to pay off your credit cards.  A portion of this amount is taken out of the account to pay for our services, usually in the early months of the relationship.

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

The savings account is entirely in your control, and you make the deposits and tell us when you have saved enough to pay off your debts.  It is important that you stay on the plan that you establish up front in order to reach the financial goals you have set.

How does this affect my credit?

If you stop paying your minimum payments the creditor may report your actions 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 a negative effect on your credit report and credit score; however, the effect on your credit differs from person to person. Our program is set up to get you out of debt the fastest and most affordable way possible, without declaring bankruptcy. Once you are out of debt, we will be able to refer you to a reputable credit repair organization if you desire.

Will I receive phone calls from collectors?

Greenlight’s goal is to get your creditors to call us and not you when they want to ask for money, and we will work with you to minimize any calls that get through to you. There are federal and state laws designed to protect you from creditor harassment; however, the truth is that most of our clients experience some collection calls.

Will I owe taxes on my forgiven debt?

The IRS considers a forgiven debt as taxable income and they will expect taxes to be paid on the settlement at the end of the year. The IRS, however, has a form (Form 982) available for certain hardship situations that may exempt you from this tax.   Consult your tax adviser for any situations on how to handle your individual income tax.

Do interest and late fees accrue on my accounts during this program?

If you let your accounts go delinquent, your creditors will continue to add interest and late fees onto your balances, however, the interest is going to accrue regardless of whether you make minimum payments or not.  

Could I negotiate on my own?

Yes you can. However, we like to compare this to the fact that you can do your own taxes and repair your own car, but the majority of people choose to seek professionals. Most people prefer to leave these tasks to experienced people who earn their livelihood as specialists in those lines of work.

Do you guarantee that you can settle all of my debts at a certain percentage?

There is no guarantee what the settlement amount will be.  Every case is a negotiation and there is no guarantee how or what the creditors will negotiate. You can help the negotiation process go smoother by continuing to accumulate money in your savings account on a regular basis.

Will entering your program repair my credit?

No. We are not a credit repair company, and our goal is not to repair your credit. We simply negotiate settlements at less than face value on your unsecured debts.  Once you are out of debt, we will be able to refer you to a reputable credit repair organization if you desire.