Debt Dismissal Process (DDP) blog update 8-10-09

Debt Dismissal Process (DDP) blog update 8-10-09

Greetings everybody. Here is the latest information:

1 – we had several face to face meetings with the enrolled agent (EA) last week and we feel confident in our relationship moving forward and we anticipate positive results in September & October from our first files (July 7)

2 – we will now be working directly with the EA’s office

3 – we will begin implementing new file submission guidelines, referral agent guidelines, referral agent training conference calls, commission structures, new compliance documents & compliance verification (for each file after it is submitted to us) & faq’s

4 – fees will remain the same (with higher fees for files submitted with an abnormal amount of accounts – we are doing beta testing on some formulas because the EA has to do more work on files with more accounts than the average file) – up front fee of 1% of the total debt amount + 20% success fee of all debt dismissed/money refunded by efforts of EA

5 - secured (mortgage & vehicle) creditor accounts may be reduced by 65%-90% of the current loan amount (varies depending on the creditor’s status with the government bailout, government policies, etc.) – the payments will be reduced and people will get notification in the mail from their lenders when the changes take place – also, they may be able to skip a payment which is often what happens when a refinance takes place - these accounts will take approximately 90-120 days to get dismissed

6 – unsecured debt (credit cards, student loans, personally guaranteed business credit cards and lines of credit, collections, charge offs, judgments etc.) may be reduced by 90%-100% of the total balance owed – these accounts will take approximately 60-90 days to get dismissed

7 – in addition to the ddp, the EA can substantially reduce state & federal tax debt– possibly 80%-90% or lower (case by case)

8 – also, the EA will get a refund check for customers for 32% of adjusted gross income (agi, normally line 37 on the first page of most peoples’ tax returns) during one of two 3 year periods (either ’05-’07 or ’06-’08) – this check will be mailed to people directly from the government agency that deals with taxes and it will arrive approximately 3-4 months after the DDP is initiated – standard success fees will apply to this refund $

9 – there are several original documents that we need including the form 100 (signed in blue ink) & our services agreement – these documents and every other document will be uploaded into the referring agent’s gmail documents area (training to be conducted soon on this technology)

10 – all new customer files/documents will be uploaded in a gmail account (into documents – nickname = g-docs) and separated by folders – each upload must be in pdf format – you may get files into this format by faxing, scanning or converting them – we’ll be holding g-docs training for those who are interested in referring files to us

11 – we will no longer be doing regular conference calls. we have learned that the majority of the people on the calls are only there because they want to hear file status updates and the new people usually ask questions that are already answered on the blog and the faq sheet.
we will do one on one calls with people who have debt amounts above $5 million – up front fees will be higher for these files

12 – the EA is in the process of getting a letter for people to give to their creditors to postpone & or cancel trustee sales/foreclosure auctions – we will let you know as soon as we hear about or see any such letter

13 – please continue to focus on referring people with commercial accounts that are personally guaranteed. most business, commercial land and commercial building owners have personally guaranteed their loans – generally, these types of people have an advanced understanding of business - they are more likely to take advantage of this once in a lifetime opportunity to get substantial amounts of their debt dismissed without having to prove their income, without having to show their assets, and without needing good credit to qualify – also, there will be no tax ramifications after the debt is reduced

14 – this week the EA will be sending us the 1096’s (transmittal documents) for the people who are currently enrolled in the ddp to sign and send back – we will forward the documents to each customer by mail with a tracking number (delivery confirmation receipt) and it will include a postage paid return envelope and another tracking number (delivery confirmation receipt) – please keep a copy of this document for your records (we will also e-mail you a copy) and mail us back the original after you have signed it

Thanks again for your continued patience as we finalize the ddp details.