Frequently Asked Questions*

We’ve compiled a list of frequently asked questions about our debt settlement program. If you don’t find the answers to your questions below, contact us here and one of our debt specialists will be happy to help.

  1. Why should I use Riverwalk Debt Solutions (RDS) to settle my debts as opposed to handling it myself?
  2. When will RDS begin to settle my debt?
  3. What if my creditors won't settle?
  4. Will I still receive harassing Creditor calls?
  5. Do I keep paying my credit card bills?
  6. How does this affect my Credit Report Score? OR Does this affect my credit?
  7. Are your debt settlement services guaranteed?
  8. Will your program stop legal action against me?
  9. What if I’m sued and they get a judgment?
  10. Who controls my personal savings used for settlement?
  11. Why are creditors motivated to negotiate?
  12. Will I owe taxes on my forgiven debt?
  13. Facts for Consumers about Debt Collection
  14. FDCPA-FDIC Law, Regulations, Related Acts
  15. 2010 FTC Debt Settlement Regulations

1. Why should I use Riverwalk Debt Solutions (RDS) to settle my debts as opposed to handling it myself?
Debt settlement can be a long, time consuming process for individuals not familiar with the industry. Our team has extensive experience in negotiating consumer debt and working with creditors. Our team also has knowledge of your rights under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.
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2. When will RDS begin to settle my debt?
As with any negotiation, there are offers and counter offers and when given the proper amount of time, a settlement is usually reached. Creditors realize that settlement may be in their best interest, because if a debtor files for bankruptcy, the creditor might be left with nothing. If a settlement cannot be reached, no fee would ever be charged for that account. RDS does not charge a fee until after a settlement offer is reached and you begin paying under the terms of the settlement.
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3. What if my creditors won't settle?
As with any negotiation, there are offers and counter offers and when given the proper amount of time, a settlement is usually reached. Creditors realize that settlement may be in their best interest, because if a debtor files for bankruptcy, the creditor might be left with nothing. If a settlement cannot be reached, no fee would ever be charged for that account. RDS does not charge a fee until after a settlement offer is reached and you begin paying under the terms of the settlement.
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4. Will I still receive harassing Creditor calls?
Creditors have the right to attempt to collect on the debts owed to them. They are not allowed to harass or threaten you. We will engage your creditors when appropriate and inform them that they should contact us with respect to settling your debt. One option you have is to send your creditors personalized Cease and Desist Letters requesting that the creditors communicate with you only in writing, with the calls coming to us. Our intent is to reduce the creditor phone calls within 30-60 days. If you continue to receive calls, please call our customer support team, who will contact the creditor if appropriate and attempt to obtain a resolution. In all cases, you should keep a log of all calls you get from creditors with respect to the debts you enroll into our program.
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5. Do I keep paying my credit card bills?
That has to be your decision. Either you can afford or you cannot afford to make these monthly credit card payments any more. When you evaluate all of your personal monthly income and expenses, are you at a point where you can no longer afford your monthly credit card payments?
IF YES: Then our program may be a good fit for you.
IF NO: Then our program may not be the best fit for you. This is a hardship program for people who are unable to continue making their current monthly credit card payments.
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6. How does this affect my Credit Report Score? OR Does this affect my credit?
Your credit is affected by many things including not being able to keep up with your minimum payments to your credit cards. This is true whether you are in the program or not. All debt relief programs will probably affect your credit rating. How much your credit is affected depends on your current credit score, as well as many other factors outside of this program. Unlike credit counseling or bankruptcy, entering our program is NOT listed specifically on your credit report.
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7. Are your debt settlement services guaranteed?
At RDS we do not charge our clients a settlement fee until the negotiation process is complete and a settlement offer has been agreed upon by both the creditor and our client, and you begin paying under the terms of the settlement. Only then are we compensated for our services.
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8. Will your program stop legal action against me?
No. When you originally signed up for these credit cards you gave the creditor the right to pursue you for any unpaid balance. However, our goal is to obtain settlement offers before the creditors consider that option. It is a common tactic of third-party creditors or debt collectors to threaten you with a lawsuit. If a creditor does pursue legal action, the debt remains enrolled in our program and the potential for settlement still exists before, during, or after the suit. The threat of legal action can be intimidating, but IT CAN BE HANDLED. There are often several steps that typically precede a creditor resorting to this extreme. This is why it is critical that we maintain good communication with you and that you continue to send us all correspondence that you receive from your creditors so that we can track the progress of each account. Note: We do not provide you with legal advice. If a legal suit is filed against you, you may wish to contact an attorney for legal advice on how to respond to that suit. Or, you can represent yourself as many of our clients do. Even if legal suit is filed, we will continue working with your creditors to find a solution that will satisfy everyone and prevent legal action from moving forward if possible.
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9. What if I’m sued and they get a judgment?
If an account does go to judgment status, we will continue to try to negotiate a settlement offer with the attorneys who obtained the judgment in an effort to reach an acceptable settlement for all parties. If a settlement is reached, the judgment will eventually be satisfied.
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10. Who controls my personal savings used for settlement?
All RDS clients have their own personal savings account known as a Special Purpose Account. That account is specifically used for this program and is controlled by you. When speaking with your Certified Debt Specialist, a monthly budget will be established that will go into your savings account each month. These funds will be used to settle your enrolled debt ONLY upon your approval. The faster the funds are accumulated into your account the faster your enrolled debts will be eliminated!
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11. Why are creditors motivated to negotiate?
Creditors are motivated to negotiate the debt because when a debtor is under serious financial strain and chooses bankruptcy, the creditor may receive little or no financial reimbursement through the court proceedings. Debt Settlement may offer a viable alternative that is more likely to produce a win-win situation for both creditor and debtor.
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12. Will I owe taxes on my forgiven debt?
The tax impact of debt forgiveness depends on your individual facts and circumstances. Generally, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount as income for tax purposes. The lender is usually required to report the amount of the canceled debt to you on a Form 1099-C, Cancellation of Debt. There are several exceptions to the taxability of cancelled debt. For more information, see The Mortgage Forgiveness Debt Relief Act and Debt Cancellation or please contact a tax advisor to discuss this issue further.
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13. Facts for Consumers about Debt Collection
Click here for the Facts for Consumers about Debt Collection
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14. FDCPA-FDIC Law, Regulations, Related Acts
Click here for the FDCPA-FDIC Law, Regulations, Related Acts
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15. 2010 FTC Debt Settlement Regulations http://www.ftc.gov/opa/2010/07/tsr.shtm
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