Settlement FAQ | Consolidation FAQ

Debt settlement is a negotiation process where a client pays only a fraction of their unsecured debt to completely eliminate it. For example, the cost to settle with creditors and pay our fees may be less than 60% of a client's existing debt. Upon becoming a client, you would make one monthly payment into your settlement account while we negotiate with your creditors until one by one, each creditor reports your account settled with a zero balance. Depending upon the size of your monthly payment, settling typically takes between 18 and 36 months. Debt Settlement allows a person to eliminate debt easier, faster, and for less money than normally required. Historically, we have been able to save our client up to 53 percent of their debt burden. Liberty Relief works with each client to set up a plan eliminating any unsecured debt. We work out an easy monthly payment, affordable to the individual client. This monthly payment will be deposited into their program special purpose account. Once funds have accumulated, Liberty Relief works on the client's behalf to negotiate a lesser amount than originally owed to the creditor. Once this amount is agreed upon and paid, the process continues until all unsecured debt in the program has been eliminated.

What if my creditors won't settle?

There are very few circumstances where a creditor will refuse to settle. As with any negotiation, there are offers and counter-offers and given time, and in the majority of cases a settlement is reached. Creditors realize that settlement is in their best interest because if a debtor files for bankruptcy, most times the creditor will be left with nothing.

Will my creditor still keep harassing me by phone and/or mail?

Liberty Relief will be working on your behalf with your creditors and involved collection agencies. Once you have entered our debt settlement program, we will begin to contact your creditors and inform them of your pursuit to handle your accounts. Your creditor may contact you for up to 45 days until the process is completed. At that point, Liberty Relief will be the sole contact for your creditors via phone or email.

How will my credit history reflect this program?

Most people who fallen behind in their payments, or are not able to make the minimum payment to their creditors, have a negative credit history. Others have an increased debt compared to their current income. This situation is called their debt-to-income ratio (FICO score), and can also have a negative effect on their credit rating. By implementing our debt settlement program we are able to assist with eliminating outstanding unsecured debt that a person may have fallen behind on, reducing the debt-to-income ratio, and freeing up funds to enjoy the things people love to do. Liberty Relief also understands that credit is very important in a client's day-to-day life. Whether it is used to buy a new car, or a requirement for a new job, a person's credit is always important. A couple of factors come into play here. First, when you make payments on your debt, your creditors can report the debt simply as "paid" or "paid—negotiated." In this case, your credit is not affected. On the other hand, if you have been behind on your bills because you can't afford to make your monthly payments, this will appear on your credit report. The key to having good credit is to make your monthly payments and get out of debt. Once you are debt-free you can restore your credit to good standing.

Why don't I just file Bankruptcy?

In most cases, financial hardship is only temporarily, and due to some unforeseen complication in one's life or financial situation. Many chose to file bankruptcy without exploring other options. Liberty Relief understands that indebtedness is a stressful situation. We want to make it as easy and stress-free as possible by handling your debt for you. One must also understand the detrimental consequences that can arise from filing bankruptcy. A bankruptcy can remain on a credit history for up to 10 years. Liberty Relief believes that bankruptcy should be chosen as a last resort only, after all other options have been explored.

Can Liberty Relief help with my car or home loan?

Liberty Relief works with unsecured debt only. Common forms of unsecured debt are; credit cards, personal loans, and accounts that have been sent to a collection agency that are not backed by any form of collateral. You should be aware that we are unable to work with student loans, auto loans and home loans. Please consult your settlement advisor with questions regarding other forms of debt, or any special situations.

How long will it take to settle all of my debt?

Liberty Relief assists individuals in eliminating their debt as fast as possible. We understand that it was probably some financial difficulty that put you in this position. Therefore, we work with our clients to set up a payment plan that best fits their needs. It does, however, depend on each individual's cooperation in the program by making payment each month. Historically, we have been able to eliminate our clients' debt in 36 months, depending on the amount of debt and the monthly payment arranged.

What does it cost and how does Liberty Relief make money?

Liberty Relief charges a flat fee based on the amount of debt you enroll in the program. We also charge a small monthly banking account maintenance fees.

How much does this program cost?

Once you have fully retained our services, your creditors will be notified immediately and we will begin the settlement process. However, we can only settle a debt once the full funds are available in your settlement account.

What if I miss a settlement program payment?

While we would like every client to take their monthly settlement payment as seriously as they do their rent or mortgage, we know that there are emergencies that take priority over your debt payments. We will continue to work with clients who have legitimate reasons for missing payments and who demonstrate commitment to the success of our settlement programs.

Will I really be debt free at the end of the program?

All accounts you entered into the program will be reported "settled" with a zero balance and you will be released from any further obligation. You will be completely free of them!

How does Debt Settlement compare vs. Debt Consolidation?

In a debt settlement program, clients can eliminate debt faster and for a lesser amount than what is originally owed, thereby saving their hard earned money.In debt consolidation, a person pays back in the entire amount owed over a longer period of time. Some consider this the same as filing Chapter 13 bankruptcy.

How do I know your company is a legitimate company?

Liberty Relief is located in East Meadow, NY. We pride ourselves in our reputation for excellence within the debt settlement industry. We are a proud listing of the Better Business Bureau. Our clients are welcome to click on the Better Business Bureau link, or contact them directly in regards to our standing. http://www.bbb.org.

Are Debt Settlement Programs a legal process?

Liberty Relief follows procedures that have been set forth by the National Debt Settlement Association (NDSA). The NDSA has been set up as an organization that works with state and national officials in establishing rules and guidelines to follow. At this time, regulation of debt settlement companies is not enforced by most states, but the NDSA has put forth the proper guidelines for these companies.

Can my creditors take me to court?

Liberty Relief has an established credibility with thousands of creditors, large and small. Our duty is to inform your creditors that our client is working to eliminate the debt at hand. In a few cases, a creditor may decide to take the debt to court for resolution. Once an individual is a client of Liberty Relief, they are taking the proper steps in resolving their debt, a fact noted by the courts. If a judgment is imposed, Liberty Relief can settle the amount owed, and resolve the issue.

How do I know that my creditors will work with your company?

Liberty Relief has well-established relationships with thousands of creditors nationwide. These relationships allow us to negotiate and agree upon a settlement amount to resolve the debt in question. In the unlikely event that a creditor will not settle, our established relationship allows us to negotiate other means to repay the debt. In this event, a hardship payment plan may be established, benefiting you.

Why can't I negotiate my own debts?

You can! You can also sell your own house, repair your own car engine or fix your own plumbing. Most of us are experts at some thing, but not everything. At New Leaf we are experts in negotiation, specifically debt negotiation. We know the credit and collections industry very well—its cycles, its internal policies and procedures, and the federal and local laws applying to all parties in the industry. Most importantly, we are not you! Keep in mind that the credit industry is also an expert at making people pay. Simply put, the tactics they use on you don't work on us. They know this and typically start at a much lower negotiating point with us than they would with you. Even though we charge for our service, the end cost to you is lower than you could likely negotiate yourself. And you won't have to take creditor calls at all—that's our job.

Will I be able to get credit cards, a loan or a mortgage in the future?

If you're asking this question then you are the type of client that is best suited for our program, one committed to getting their finances back on track as soon as possible! At the conclusion of our program, you should have what many creditors find most important, the ability to pay, along with minimal other commitments. You may have to go to several financial institutions to find acceptable lending terms. As you near completion of our program we will refer you to companies that can help you re-establish your credit.

Will Liberty Relief stop fees and interest from accruing?

Liberty Relief understands that late fees and interest can accrue on an account during the time period before the account is settled. In some instances, collection agencies have already added a fixed amount to the debt. Liberty Relief's program benefits the client by negotiating debt, including fees and interest, resulting in savings and debt elimination favoring our clients.

Do I have to include all of my creditors into the program for Settlement?

Initial Consultation:

Your initial consultation is a free, no obligation evaluation of your financial situation. You will be able to have an extensive conversation with one of our Financial Consultants who will be able to offer the best advice possible based on your budget. You will be able to determine at this point if our Debt Settlement program will best suit your financial needs.

Upon Enrollment:

From the very start of your program, Liberty Relief will contact your creditors and take over your accounts. You will have no further correspondence on these accounts. We take care of everything for you. You may still receive correspondence by mail but all phone calls will be directed to our office.

Clients Responsibilities:

This is a program designed to not only save you money but to also simplify your daily life. Your responsibilities while working with Liberty Relief are very limited. As a client your only real responsibility is maintaining a special purpose account. Payments will not be sent to your creditors but will be deposited into this trust account. We will not access your account at anytime to withdraw funds without your permission. Liberty Relief wants each client to feel as though they are in charge of their program and their money.

Program:

Throughout the course of the program your creditors will be contacting our office on a regular basis (usually every 30 days) to verify representation and to make settlement offers once your accounts have gone through a standard aging process. Settlements normally do not begin until after the first 90 days of your start date. Our negotiators that are handling your accounts will be contacting you with settlement offers made by your creditors. We will advise you on how to proceed with each offer however; the final decision is up to you. No settlement will be finalized without your approval. This process will continue until you no longer have any outstanding unsecured debt..