Frequently Asked Questions
a) Can you define an unsecured debt?
b) Can you define a secured debt?
c) Who qualifies for TurnKey's program?
d) Do you approve everyone as a client?
e) How can I apply?
f) What is the process to settle the debt?
g) Is there an entrance barrier to TurnKey's Debt program?
h) Is bankruptcy better or worse for me?
i) What's going to be the effect on our/my credit?
j) Will I be able to use some of our/my credit cards?
k) What does this program cost?
l) Can my creditors sue me?
m) Is there something that can be done about the calls from collectors?
n) Will TurnKey Debt help me with our credit?
o) What about all the interest and fees that are adding up, can you do something about
that?
p) Can a credit card company touch my salary? (garnish wages?)
q) Are there any tax consequences?
r) Can I do this by myself?
a) Can you define an unsecured debt?
This is an obligation which is unsecured and has no item tying to it, such as a car, or boat or the most common, real estate, which the lender can seize in case of a non payment. The only thing a creditor can do is take you to court to try to get his money out.
b) Can you define a secured debt?
Unlike the debt above, this debt IS tied to a house, boat or car, to which the creditor has first right to usually, if the loan is not paid. In real estate that's called Foreclosure, in car terms its called reposession.
c) Who qualifies for TurnKey's program?
TurnKey Debt's Total debt program is for consumers in some sort of a hardship. This is one or more of the following: client is making late payments, client cannot pay their debts, and is looking into bankruptcy as a solution.
d) Do you approve everyone as a client?
No. The reason being that TurnKey Debt does not advise anyone to default on their debt! The program is not designed to reduce debt for people with enough resources to pay off their debts. If you have the ability to pay your debts by paying the minimum payments, then you should continue paying your obligations. Moreover, the program is not intended for people who are either A.) gainfully employed, B.) Good Credit and C.) are currently paying easily their debts.
Give us your contact information in our application form now. Our debt group will review the information and get in touch with you as soon as in 2 hours to discuss your situation. After the debt analyst has reviewed your financial situation, they will tell you if you have a green light to move forward!
f) What is the process to settle the debt?
We will plan with you, an amount to save monthly towards the settlement. These are funds that are saved monthly. This amount will be discussed in your first discussion with our debt advocate and is calculated by taking the following variables into account: The amount of debt you owe, and what you can actually afford, without causing you another financial hardship. Once enough money has been saved to make a reasonable offer to your creditors to settle the debt, one of TurnKey Debt's expert negotiators will move the negotiation process forward on your behalf. After a few months of savings, there will be enough money in the account to start settling the debt, and we will then contact the creditors, one of our negotiation team will then start the process. Since there are people who owe $10,000 and others who owe $100,000, this will be different almost every time.
After a settlement amount is agreed upon by both sides, us and the creditor, we will then contact you and get your approval. We make sure we get this offer in writing from the creditor. There are two ways to settle debts in this environment, making payments and lump sum. The second option is the cheaper one, and is usually the way we choose.
Once this particular debt is over with, we repeat the process with the rest of the debts until there are none left. You are done!
g) Is there an entrance barrier to TurnKey's Debt program?
TurnKey Total Debt program is a program for people in a hardship, mostly financial. Our program is designed for people who:
- Have some type of hardship (divorce, medical emergency, loss of income, reduction in pay, etc. )
- Client Has a minimum of $10,000 or more in unsecured debts
- Client is having trouble keeping current or is delinquent on their account
- Client is in collection or close to being in litigation with a creditor
- Client Has not contested the debt owed, but just cannot pay it
- Client may consider Bankruptcy as a solution, but would like to avoid it.
h) Is bankruptcy better or worse for me?
We recommend all of our client to contact a competent attorney specializing in bankruptcy to get a consultation wether or not their situation warrants filing for bankruptcy.
i) What's going to be the effect on our/my credit?
Your credit will be hurting for a short time. However most likely your credit usage, or your available credit is so low, that you're unlikely to get credit in any case (esepcially true in this very challanging environment of 2009-2010 recession) However, once out of the program, in a very short time your credit will improve wonders, and you will be receiving these offers for credit once again!
j) Will I be able to use some of my credit cards?
Unfortunately, the answer is no. We will ask you to close all of your accounts, if you leave one open and close the rest, the creditors can see this and refuse to settle, stating that you ARE paying XYZ credit card, why them and not us....
k) What does this program cost?
TurnKey Debt charges a standard 15% service fee which is a percentage of what the debt we take under management is. Our program fees are paid out through the first year of the program.
All our costs and fees are fully explained to you and require your signature for approval before you commit to our program.
l) Can my creditors sue me? YES.
Your creditors defenitly can sue to get their money. Usually though, the purpose of the lawsuit is just to get to a settlement. In our experience, most creditors prefer not to go to the lawsuit route and would rather try to reach a settlement.
m) Is there something that can be done about the calls from collectors?
NO. TurnKey Debt, or for that matter any other debt settlement intitution, can stop creditors from contacting you. An exception is if your account is in collections, the agencies dealing with it, have to follow the "Fair Debt Collection Practices Act" Guidelines.
n) Will TurnKey Debt help me with our credit?
NO. TurnKey Debt does not have a credit repair department. While there are many companies engaged in the business of credit repair, this process is lengthy and uncertain. Almost no company will promise you results with a guarantee. However going about it without the credit repair option, once the account is marked as paid, this is so much better than delinquent or "included in bankruptcy" or unpaid etc, which are some of the other notes out there.
o) What about all the interest and fees that are adding up, can you do something about that?
TurnKey Debt cannot stop a creditor from adding interest or late fees to an account. However, One of our clients this past year had a visa card from Bank of America, with a balance of $51,000 on it. The interest and charges made it $57,000, and we settled it for around 15% of the debt. Do you think he was a happy customer?
p) Can a credit card company touch my salary? (garnish wages?)
YES. But, this can be a very long and hard process anyone, and may not be worth it under a certain dollar amount. First the creditor has to start a legal process, sueing you, so he can get a judgment. Then they need to sue for a process of wage garnishment. The wage garnishment lawsuit route is usually not taken if you work with the banks and creditors.
q) Are there any tax consequences?
Credit card companies typically report debts that are settled over $600 as income "earned" by you. Also you need to report it on your tax filing. In most cases however, there is a provision to allow you to not get into this situation, and a tax consultant or CPA can show you what to do.
YES. You can also file your own taxes, however many (most) people use an accountant. You can defend yourself without a lawyer but would you want to? You can negotiate your debts with your creditors on your own. It may cost you less if you can do it on your own, than to use TurnKey's services.
Some words of caution though, note that the debt settlement process can be long and complex for the most consumers. Our expert debt negotiators have the knowledge and many years of experience negotiating large debt reductions with the creditors. By using TurnKey Debt's services you won't spend valuable time and effort trying to negotiate with your creditors. Instead you can rely on TurnKey Debt's team of professionals to negotiate the best possible debt reduction on your behalf.
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