Contents
Have Questions?
Our team is available to explain these disclosures and answer any questions you may have.
Call 1-844-598-0478Consumer Warning
Not all debts are eligible for settlement. Results vary based on individual circumstances, creditor policies, and your ability to save funds for settlements. Debt settlement may negatively impact your credit score and have tax consequences.
At DebtHalf.com, we are committed to transparency. Please review these important disclosures about our debt settlement services to ensure you have all the information needed to make informed decisions about your financial future.
Debt Settlement Program Disclosures
Not a Loan
DebtHalf.com does not provide loans or credit. Our services involve negotiating with your creditors to potentially reduce the balance you owe.
Timeline
Our debt settlement programs typically take 24-48 months to complete, depending on your financial situation and the amount of debt enrolled.
Settlement Fund
You will be required to make regular deposits into a dedicated settlement fund account. These funds will be used to pay settlements and service fees.
No Guaranteed Results
While we strive to negotiate significant reductions, we cannot guarantee specific settlement amounts or that all creditors will agree to negotiate.
Collection Activities
Until a debt is settled, creditors may continue collection efforts, including phone calls, letters, and potentially legal action.
Service Fees
We charge a fee based on either the debt amount enrolled or the amount saved through our negotiations. Fees are only charged after a settlement has been achieved and accepted by you.
Potential Consequences
Credit Impact
Debt settlement may have a significant negative impact on your credit score and credit history. When you stop making payments to creditors as part of the settlement strategy:
- Your accounts may be reported as delinquent, late, or in default
- Your credit score may decrease
- Negative information may remain on your credit report for up to seven years
- Even after settlement, accounts may be reported as "settled for less than the full amount"
Tax Consequences
The IRS generally considers forgiven debt as taxable income. If a creditor forgives more than $600 of your debt, they may issue a 1099-C form, and you may need to report this as income on your tax return. Certain exceptions may apply, such as insolvency. We recommend consulting with a tax professional regarding potential tax consequences.
Legal Risks
When you stop making payments to creditors, they may:
- Escalate collection efforts
- Charge additional late fees and interest
- Sell your debt to a collection agency
- File a lawsuit to recover the debt
DebtHalf.com is not a law firm and cannot provide legal representation if you are sued by a creditor.
Important: Debt settlement programs should be considered primarily for consumers who are experiencing legitimate financial hardship and are unable to meet their current debt obligations.
Consumer Rights
As a consumer considering debt settlement services, you have the following rights:
- The right to receive clear disclosures about the services offered, potential outcomes, and all associated fees
- The right to terminate services at any time, subject to the terms of your agreement
- The right to receive an accounting of all transactions related to your program
- The right to have your personal and financial information protected and kept confidential
- The right to be treated with professionalism and respect
Alternative Debt Relief Options
Before enrolling in a debt settlement program, you should consider other debt relief options, which may include:
Credit Counseling
Working with a non-profit credit counseling agency to develop a budget and debt management plan.
Debt Management Plan
Making one monthly payment to a credit counseling agency, which then distributes payments to your creditors, possibly with reduced interest rates.
Debt Consolidation Loan
Taking out a new loan to pay off multiple debts, ideally at a lower interest rate.
Bankruptcy
A legal process that can eliminate or restructure your debts. Different types of bankruptcy (Chapter 7 or Chapter 13) have different requirements and consequences.
Self-Negotiation
Contacting creditors directly to try to negotiate settlements or payment plans on your own.
State-Specific Disclosures
Debt settlement regulations vary by state. Additional disclosures may apply based on your state of residence. Our enrollment specialists will provide you with any state-specific disclosures during your consultation.
Updates to Disclosures
DebtHalf.com may update these disclosures from time to time to reflect changes in regulations, industry practices, or our services. The most current version will always be available on our website.
Questions About These Disclosures?
If you have any questions about these disclosures or our debt settlement services, please contact us:
Last Updated: June 10, 2023
Back to Top