Q: How much will it cost me to restructure my debt?

A: Our main fees are as follows: Since you can only afford to make fractional payments, you can’t afford large lump sum settlements. Therefore, we need to extend your settlements out over time. For every month that CT extends a settlement’s payment terms, CT will earn 2% (two percent) of the settlement amount. If CT does not reduce the amount owed, CT will lower this percentage to 1% (one percent) per month for non vital creditors. We also get 35% of whatever we save you, $75 for each creditor included and $10 for every check we send to your creditors. What does all this mean? For clients who completed the program, the average amount paid to resolve the debt in the program was 70.33% of the amount owed to creditors, including CT’s fees. Additional fees may apply. Please see contract for specifics.

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Q: How long will it take to complete the program?

A: Every restructuring has a unique combination of debts, creditors, and our clients' ability to fund. So we can't make promises about how fast you can become debt free. However, if you qualify, under our Cost Cap Guarantee we can tell you the maximum amount of time it will take to complete our program. Take your total amount of debt in the restructuring, which may increase over time, and divide it by your monthly budget. The result is the maximum number of months it will take you to complete our program. For clients who successfully completed our program, the average timeframe to do so was only 24.54 months. If you would like to shorten the length of the program, you can do so by increasing the amount of your installments.

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Q: What types of reporting and updating can I expect?

A: Our computer system enables us at any time to give you a comprehensive statement of all your transactions. Every month you’ll receive:

1. Statement of Account -This report lists all transactions that occurred the previous month. This includes all payments you’ve made to us, payments to your creditors and the current balance of funds in your account.

2. Creditor Status Report - Displays the status of each creditor:
     • The balance owed to each one.
     • What stage of negotiations they’re in.
     • Total payments sent to each creditor.
     • Settlements reached and amount of savings.

3. Possible Creditor Default Report - Shows which creditors in the program are close to written-off. A written-off creditor is defined as someone who is not actively pursuing collection of the debt despite our attempts to contact them. It asks you to verify if this is true, and if they have contacted you in the last 120 days.
   
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Q: How will the program affect my credit?

A: We don’t start paying creditors until after they settle with us, and some may not settle for a while, and many settle for less than what you owe. As a result, your credit rating may decline. But if you are willing to compromise your credit rating in order to save your business and build a profitable future, your goal can be accomplished by entering into an affordable restructuring plan with us.

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Q: Why should I use you instead of negotiating myself?

A: You can do it yourself. As a matter of fact, most of our clients did negotiate on their own prior to engaging us. They came to us after they broke the payment plans they set up. Let me give you the advantages of using our services.

1. The stress and aggravation – Many clients come to us for this reason alone. Anyone who is under this kind of pressure understands. When we represent you there is no reason to dodge calls. If a collector calls, simply refer them back to us. It feels great to know your situation is being handled professionally.

2. Negotiating under pressure can make a bad situation worse - Payment plans made under pressure may buy you some time, but inevitably those payment plans are broken because the payments were unaffordable to begin with. Once you've broken your payment terms for a second time, your credibility is lost.

3. The time it takes you – writing checks – the accounting – time on the phone - the constant interruptions – upset employees – always putting out fires. If we handle your debt problems, you’ll be able to get back to work.

4. Our expertise – restructuring is our core business. We have a staff of over 100 industry professionals including attorneys, former debt collectors and debt negotiators all focused on settling debts within your limited budget.

5. Our experience – All we do is deal with creditors, collection agencies and attorneys, many of whom we have alliances with. We send them checks on a consistent basis and they know they won’t have to chase us for payments after a settlement has been reached. We currently pay creditors about a million dollars a month and are helping over 1,000 businesses across America.

6. Our Proprietary Software Application – Payoff – No one else has it or anything like it because we created it from the ground up. It is the culmination of years and years of programming, utilizing data from thousands upon thousands of settlements. Payoff enables our negotiators to offer your creditors customized settlements while respecting your limited budget. It determines which settlements are within your budget and which settlements are not by considering variables such as: the amount of the individual debt, the level of collection activity, if there is a lien on any of your property, if there are any personal guarantors, how much we have in your account with us and how much your installments are relative to the total amount of your debt. Payoff also enables us at any time to give you a comprehensive statement of all your transactions showing where every cent of your money is going, as well as a status report detailing all the individual settlements with your creditors.

7. Credibility – When creditors aren’t getting paid, they’re not likely to believe a debtor’s tale of woe. Simply put, creditors don’t want to get beat by someone that can afford to pay them. Unfortunately for all parties, outside of litigation and bankruptcy, creditors have had no way of knowing about a debtor’s true financial condition. So in an effort to get creditors to cooperate with a restructuring, we developed T.R.U.C.E. - The restructuring Uniform Code of Ethics. T.R.U.C.E. is the benchmark of our credibility. This code assures creditors fair treatment without the involvement of the courts. Creditors and debtors can now avoid the extra time and money required for lawsuits and bankruptcy. The savings of time and money benefit everyone. Because of T.R.U.C.E., creditors can be confident of receiving fair settlement offers.

8. Building more credibility for you – A deadbeat is someone that can afford to pay but won’t pay unless they are forced to. But our clients are just the opposite – they want to pay but can’t afford to. A deadbeat wouldn’t:

   1. Sign a legally binding obligation to make payments to us until all their creditors are paid.

   2. Give us authorization to electronically withdraw the installments from their bank account.

   3. Prove their hardship.

   Our clients do. By agreeing to and meeting these requirements, our clients gain tremendous credibility because they are legally and financially committed to paying their creditors.

9. Unlimited settlement options – We don’t believe in trying to force a particular settlement on creditors; after all, we are asking them to compromise. The truth is that we do give creditors unlimited settlement options. They can determine when they get paid or how much they get paid and sometimes both. By giving creditors a choice in the matter, they are more cooperative and they can also satisfy their own settlement requirements while working within your budget.

10. It’s almost impossible - If you can afford only 5% or less of what you owe per month, the chances of you restructuring your debts successfully on your own are slim to none. To give you an idea of how hard it is to settle within your budget, let me give you an example. Let’s suppose you have $100,000 in debt and can afford only $2,500 per month. That’s 2.5% of the total debt. When you contact the creditors, collection agencies and attorneys, every single one of them wants payment in full and they all want it now. However you, being the greatest negotiator in the world, get each and every creditor, collection agency and attorney to agree to take a lump-sum settlement of 10 cents on the dollar. That’s $100,000 in debt settled for only $10,000. As amazing as that sounds, it’s 4 times more than you can afford because you only have $2,500. For that reason, our job is virtually four times harder than that incredible settlement.
    
    To give you an analogy, a Rolls Royce at one-tenth the price is an incredible offer, but if you don’t have the money, you can’t take advantage of the deal. For that reason, our job is virtually four times harder than that incredible settlement.

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