Debt Settlement FAQs

We have tried to compile all of the frequently asked questions below, if you do not see the answer to your question or the topic you are interested in please email us at info@aci-solutions.com

• Q. When does ACI begin settling my debt?
• Q. If I miss a monthly payment to ACI will I be dropped from your program?
• Q. How do I find out the progress of my debt settlement?
• Q. I have a flexible monthly income. Can I still participate in the program?
• Q. Are my creditors going to continue to call me?
• Q. Will my creditors continue to contact me by mail?
• Q. How does this affect my credit?
• Q. Do I have to include all of my creditors into the program for settlement?
• Q. How long will it take for me to become debt free?
• Q. What if my creditors won't settle?
• Q. Why should I use ACI to settle my debts?
• Q. Can I negotiate on my own?
• Q. Will ACI stop late fees and interest from accruing on my accounts?
• Q. Will I be totally debt free when I’m done?
• Q. How is the service fee paid?
• Q. Where are my monthly deposits placed for creditors?
• Q. What happens if I need to file Bankruptcy or want to drop out of the Program?
• Q. Will I owe taxes on my forgiven debt?
• Q. Do you begin negotiating with my creditors right away?
• Q. Can I be sued?
• Q. Do you guarantee that you settle all of my debts for a certain percentage?

Q. When does ACI begin settling my debt?
A. Once you have fully retained our services, your creditors will be notified immediately and ACI will begin the settlement process. However, we can only settle a debt once the full funds are available in your settlement account.
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Q. If I miss a monthly payment to ACI will I be dropped from your program?
A.No. Simply call our customer service department and we will arrange payment over the phone. It is understandable that circumstances may arise and we will help you get back on track with your payment schedule.
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Q. How do I find out the progress of my debt settlement?
A. You can call us at 888-420-4791 , Monday thru Friday from 8am - 6pm PST to speak with a representative or email us at info@aci-solutions.com..
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Q. I have a flexible monthly income. Can I still participate in the program?
A.Yes. Our fees and payment schedule is on a client-by-client basis. We will figure an affordable and simple plan for your unique situation.
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Q. Are my creditors going to continue to call me?
A. We offer a unique perspective here with expert insight as to how the debt settlement process works most effectively. Please call us with regard to this question as we can make you understand our philosophy and more importantly the creditor philosophy.
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Q. Will my creditors continue to contact me by mail?
A.Your creditors are afforded the right to contact you by mail as per the FDCPA. Furthermore we welcome that as it will give us notification as to the next step of the collection process for them and also advise us as to where the account has been placed. Please make sure and notify your representative at ACI whenever your receive correspondence from a creditor.
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Q. How does this affect my credit?
A. If you do not make required minimum payments to your creditor you may be breaking the terms of your agreement with them and your actions will probably be reported to consumer reporting agencies as a late, delinquent, charged-off or past due balance. This is true whether or not you have enrolled in a Debt Settlement Plan. Depending upon the condition of your credit report at the time of enrollment, a Debt Settlement Plan may have an adverse effect on your credit report and credit score. However, once negotiated and settled, your creditors will report the accounts as "settled" or "paid in full" depending on whether they are an original creditor or debt buyer. Our goal is to get you out of debt for the lowest cost, in the shortest period of time without declaring bankruptcy. Once you are out of debt, we can give you some hints and tips to help repair your credit and give you concrete tools for the future to rebuild.
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Q. Do I have to include all of my creditors into the program for settlement?
A.Not necessarily. If you have a card with a low balance that you can pay down to zero, then you can try to keep that credit card for emergency use but keep in mind that creditors monitor your credit report and by keeping an open balance that is paid regularly could hinder the results we are trying to accomplish for you. As you can imagine, it makes it difficult for us to negotiate with your creditors if they can see that you are negotiating on some accounts but not others. Any accounts that are included in the settlement will have to be closed. Creditors will not settle accounts that are open. Any balances under $1,000 are recommended to be paid off by the consumer directly as creditors are not inclined to settle this low of an amount nor does it provide much savings to the consumer if we do it for them.
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Q. How long will it take for me to become debt free?
A. It typically takes between 12 and 36* months to complete our program.
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Q. What if my creditors won't settle?
A.There are very few circumstances where a creditor will refuse to settle. As with any negotiation, there are offers and counter-offers, however given time, the majority of cases reach settlement. There are instances where an attorney will attempt to collect the debt, which provides can cause a bump in the road as they usually do not offer favorable settlements.
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Q. Why should I use ACI to settle my debts?
A. Our team has extensive experience in negotiating debt and working with creditors. We have long-standing relationships with creditors and collection agencies who are usually unwilling to negotiate with the consumer directly. Our team has extensive knowledge in consumer debt and the Fair Credit Reporting Act, as well as the Fair Debt Collection Practices Act.
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Q. Can I negotiate on my own?
A.Yes you can. You can also do your own taxes and repair your own car. However, most people see the value in leaving these tasks to experienced people who earn their livelihood as specialists in those lines of work. Our team of debt negotiation specialists has only one job - negotiating reductions on our clients’ unsecured debts. We have the knowledge and the experience to stand up to your creditors and fight for the best settlement possible.
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Q. Will ACI stop late fees and interest from accruing on my accounts?
A. ACI cannot stop a creditor from adding interest or late fees to an account. Based on your agreement with the creditors, if you let your accounts go delinquent, interest and late fees will likely be tacked on to your balance. Fortunately, your individual program will reflect those fees and/or interest, and everything is incorporated into the Settlement Program. Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that accrue.
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Q. Will I be totally debt free when I’m done?
A.Our program is focuses only on unsecured debts (credit cards, medical bills, unsecured personal loans). We cannot help you with debt that is secured by collateral (such as mortgages or auto loans). After completing the program, however, the money that you are no longer paying towards your unsecured creditors can now be used to pay down secured debts, as well as to save for your financial future.
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Q. How is the service fee paid?
A. There are No Up Front Costs to you. Only AFTER a settlement has been accepted and paid for, we then charge a percentage of whatever we saved you. This way you see tangible results and you do not pay us a dime until we show you a savings. We don’t get paid until we save you money.
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Q. Where are my monthly deposits placed for creditors?
A.Your funds are placed in a Trust account where they will accrue. Creditors feel more comfortable with this approach as trust account funds are guaranteed and come from a third party. Keeping funds in your own bank account could be visible to certain creditors down the road and impact your success in our program. ACI’s fees are deducted from this account only AFTER we settle an account for you. If there are not enough funds in the account to settle the credit card debt AND take our fee, we will use the funds for settlement to give you immediate results and we will take our settlement fees from the next deposits until our fees are complete for that particular settlement. This is based on the Agreement that you sign with us.
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Q. What happens if I need to file Bankruptcy or want to drop out of the Program?
A. Any funds remaining in your account are yours and will be refunded to you. There will be an early termination fee of $150, that is all. If we are still owed money for a settlement, we will take that out of the funds saved and refund the rest.
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Q. Will I owe taxes on my forgiven debt?
A.The IRS considers a forgiven debt as taxable income, so at the end of the year, they will expect taxes to be paid on the settlement. The IRS, however, has a form (Form 982) available for certain hardship situations that may exempt you from this tax. Please contact a tax advisor to discuss this issue further as we are not tax specialists.
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Q. Do you begin negotiating with my creditors right away?
A. That will depend on your ability to save and will also depend on your delinquency. If you are completely current on all cards at the start of this program, it will be approximately 4-6 months before a creditor will negotiate a settlement.
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Q. Can I be sued?
A.Creditors do have the right to send debts to third party collection agencies and/or law firms in order to collect a debt. If this happens, we will continue to negotiate on your account and will treat the debt as a priority creditor (meaning we will try to resolve it first, before moving onto your other accounts). Based on our actual experience, only a small percentage of cases proceed to lawsuits. When this does happen, usually the purpose of the lawsuit is to force a settlement. We will continue to negotiate the debt, although the settlement percentages are often higher than typical “non-legal” settlements. If a lawsuit is filed before you have saved up enough funds to negotiate a settlement, we will seek to resolve the account by putting it on a long term payment plan for 100% of the balance. Please note, we are not a law firm and cannot provide legal advice or legal representation.
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Q. Do you guarantee that you settle all of my debts for a certain percentage?
A. No. Every case is a different and there is no guarantee how the negotiations will wind up. The success of our program is highly dependent on your ability to save the specified amount each and every month you are in the program.
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