Below are the most frequently asked questions we receive. If you have a question that is not answered here, please do not hesitate to call ADR and talk with one of our representatives.

What does ADR have to offer me compared to other debt settlement companies?
Our No. 1 priority is: client satisfaction. No other company has the focus and drive we have in helping you eliminate your debt. Our teams of debt negotiators has years of experience and long-standing relationships with credits that help successfully settle our client’s debt.

At ADR, we know that every client is unique, and we work with you to establish a personalized plan that takes your budget and time frame into account. And once you are in the program, our Account Managers work with your needs and give you the individual attention that you deserve.

How do I get started?
Pick up the phone and call an ADR Specialist.

Yes, it’s really that easy. Our Specialist will give you a free, obligation-free consultation. We’ll talk with you about how to become debt-free. Enrollment begins immediately. And we work directly with your creditors so you don’t have to deal with the hassles and headaches of constant, grinding phone calls. We cannot guarantee that they won’t call or contact you at all, but we CAN manage them for you.

We’ll negotiate with creditors to establish a settlement that is pleasing to both the creditors and you. The reasonable payment plan will cut your payments and settle the debt by 40 to 60 percent of what you owe (in most cases).

How long does it take to complete the ADR program?
The length of time varies due to each case. Every person’s situation is unique. We do take into account a realistic time frame when we create a personalized plan within your budget. At your free consultation, we discuss how long it might be. Our average ADR client usually completes the program in less than 36 months, but it depends on the specifics of the situation.

Please let us know about your concerns and questions at the initial free consultation.

What happens during my initial free consultation?
Our trained and experienced Specialists will explain in detail how debt settlement works then listen to the particular details of your case. Then, we will propose a specific plan based on your personal financial history and status. Once in the program, your ADR Account Manager will guide you through the rest of the debt settlement process.

How does debt settlement differ from debt consolidation?
Debt settlement decreases your debt balance by 40 to 60 percent, thanks to our negotiations with creditors.

Debt consolidation lumps all your outstanding credit into one giant sum and secures your debt amount with an asset of great value, such as your home.

Debt settlement takes about 36 months to complete with lower monthly payments since you only pay back a percent of the debt owed at the time of the settlement.

Debt consolidation only buys you more time, but takes much longer for the payback process. Plus, it has risky consequences, such as losing one’s house.

Debt settlement and debt consolidation sound similar, but they are two entirely different methods to eliminate debt.

Do I have to combine all my debts, or can I pick certain debts to settle?
You are the one in control of your finances. We’re here to help. You get to decide whether to settle all your debts or just some of it. ADR’s Specialists will advise you about the different methods for either one. Please note: We usually recommend eliminating all outstanding debt. It helps you feel empowered to get rid of the weight of it all and helps you regain your financial freedom.

What's so bad about filing bankruptcy?
Appearing to be quick and simple, bankruptcy is often a person’s first choice. But despite many people filing for bankruptcy each year, most don’t realize just how devastating it can be to their credit. Bankruptcy not only ruins credit but it has severe, long-lasting effects that do not disappear after 10 years. All credit applications ask if you have ever filed bankruptcy; they don’t specify the years, and you will have to answer the question truthfully. Plus, a bankruptcy is a matter of private record. You’ll never get rid of it from your public record. Plus, filing bankruptcy means paying lawyers and court fees, too.

It used to be that a person could eliminate debt by filing for Chapter 7. Now, however, changes in bankruptcy laws have made it so that consumers must file Chapter 13. This means you will still have to pay back a percentage of your debt under the supervision of this court. This process can last for years and years.

Though it is a valid option for debt elimination, bankruptcy should be one of the last considered options.

What kind of team do I have working for me if I choose to hire ADR to settle my debt?
You have a team that is dedicated to honest, clear communications and support. Our experienced Specialists know the difficulties and stress that financial problems can cause clients. And we’re focused on alleviating that stress. With years of experience in personal debt cases, we can give you simple, clear facts about eliminating stress and regaining your financial freedom.

How does debt settlement affect my credit?
At Alliance Debt relief, we do not repair credit. Our focus is on helping you to eliminate your debt. We do not deal with credit reports. So many factors make up credit ratings, such as length in credit bureau, debt to available credit ratio, payment history and types of credit used.

Debt Settlement will be harmful to your credit rating. Creditors won't agree to settle on an account that is current, so your credit report will state that you are behind on payments until the debt is settled.

How does the IRS treat debt that is forgiven?
Financial institutions sometime provide a Form 1099-C if a forgiven debt amount exceeds $600. Please note: If you receive a Form 1099-C showing income in the form of canceled debt, this does not necessarily mean you owe taxes on the forgiven portion of the debt. In most cases, clients can legally and ethically exclude forgiven debt from their income through the "insolvency exclusion" provided by the IRS code. This means your liabilities exceed the fair market value of your assets (i.e. you owe more than you own). We recommend that you consult your tax advisor regarding your particular circumstance and to assist you on filling out Form 982 that excludes you from the particular debt.

Does ADR make monthly payments to my creditors for me?
No.

You are responsible for all payments to Creditors, including settlement payments. ADR only collects its monthly service fee. You are responsible for any payments to Creditors and for saving funds to settle your debt.

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