Frequently Asked Questions

Our goal is to help you get out of debt as fast as possible by negotiating with your creditors to get them to accept significantly less than face value on your unsecured debts. Depending on the condition of your credit report at the time of enrollment, any debt settlement or debt negotiation program, including ours, could negatively affect your credit. Negative information could remain on your credit report for up to seven years. By engaging in good credit behavior, anyone’s credit score

could recover over time. Results vary depending on your payment history, credit utilization, length of credit history, and debt-to-income ratio.

If getting out of debt is more important to you than the likelihood that your score will be negatively impacted, our program could help you resolve your debt faster and for less—without declaring bankruptcy. 

There are federal and state laws designed to protect you from collections harassment, but the fact is most of our clients will experience some collections calls.   Our goal is to get your creditors to call Green Path Solutions, not you. Find out more about laws that regulate debt collector behavior and what your rights are. 

Green Path Solutions could help you with debt from credit cards, medical bills, department store cards, and many other types of unsecured debt. Our program cannot help with a debt that involves collateral (like auto loans and mortgages). Also, we cannot resolve federal student loans. We do help with private student loans and some business debts on a case-by-case basis. 

If you have one card with a low balance that you can quickly pay down to zero, then you may hold on to it for emergencies. The program will generally not work, however, unless you enroll all of your high balance (greater than $500) credit card accounts. Open credit cards make it difficult for us to negotiate with your creditors if they see you are settling on some accounts but not others. 

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. IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, may exempt you from this tax. Please contact a tax adviser to discuss this issue further. 

In order for an attorney in the Legal Partner Network to work on your behalf, you must have made all your program deposits on time and in the full amount. It’s important that there are enough funds available to negotiate a settlement if needed. Consistent deposits are crucial to overall program success and create negotiating leverage for attorneys to work on your behalf. 

Yes you can. You can also do your own taxes and repair your own car, but most people would rather leave these tasks to experienced professionals.  Our knowledge and experience puts us in a strong position to stand up to your creditors and fight for the best settlement possible. 

In a debt resolution program, you voluntarily stop making payments to your creditors. When you stop paying your creditors, there’s a chance they may choose to take legal action to collect on the debt. Although we are not lawyers or licensed to practice law, we know our clients might need legal assistance. If a creditor takes legal action on one of your enrolled debts, and you qualify, we may be able to engage an attorney in the Legal Partner Network to work on your behalf for the purpose of settling an enrolled debt. This service is included as part of your program.