Debt questions and answers

Q1. What is the purpose of the Shielded Circle Program?
A1. To provide a system that protects your income, assets, and bank accounts from your creditors.

Q2. Will this protect me from all my creditors?
A2. No, only unsecured ones, such as your credit card companies, banks, and bill collectors for such things as credit cards, unsecured signature loans, hospital and doctor bills, deficiency judgments, old residence lease payments, abandoned time share payments, etc.

Q3. How does the program work? Is there a lot of work for me to do?
A3. Upon entering the program, you receive legal documents which establish a valid creditor/debtor relationship between you and the company similar to the relationship you have with your creditors. This provides the legal framework to validate the program. You will be asked to sign the documents and return them to our office as quickly as possible. Following that the firm will file a lien to begin your protection. You may then stop making payments to your creditors. After that, we go through a series of legal steps to deter your creditors from wanting to pursue collections and being able to garnish your wages. This sets the stage for a favorable debt pay off of pennies on the dollar

Q4. If I have a lien against me, won’t that show up in my credit file?
A4. Yes, it will. That is part of the financial shield. The most important point to understand is that the lien we put in place for you must occupy the first position, called the Superior Position. The person or entity occupying that position is literally in charge. Any and all others (other than the government) must wait in line before they can take any actions.

Q5. What if I already have a judgment against me? Will this still protect me?
A5. Possibly, but not in all cases. If, for example, a credit card company has sued you and won, there is probably little we can do to protect you from that creditor. However, you probably owe on more credit cards than that one. Our protection can shield you from them. There may be situations where we can shield you from existing suits. We will need to see all your documents to make a determination.

Q6. Does it matter how much I owe or how many credit cards I have?
A6. Our fees are not based on how much you owe or how many credit cards you have. It is based on how many individuals need protection. There is a price discount for those with a minimum of debt.

Q7. Is this similar to bankruptcy?
A7. In October, 2005, there was a bankruptcy reform bill that went into effect. That bill changed the face of bankruptcy considerably. Chapter 7 bankruptcy, which is what most people used to be able to get out from under their unsecured debt load suddenly became much more difficult to qualify for. Unless one is earning less than average income in his area and has few assets, he will probably be forced into Chapter 13. That will require attending credit counseling, going through a “means test” in which a determination will be made as to what percentage of your debts you still must pay. Legally, this percentage can be from 0% up to 100%. We normally see about 40% being required. Earned income will then be the property of the court. A referee will be assigned to dole out the money depending on certain criteria. The bankrupt will be left with a portion of that amount to cover basic living expenses. This court appointed officer will be in control of all income until the debts are satisfied, which could take up to five years.

The Shielded Circle Program enables you to avoid bankruptcy. There will be no “means test”, no court appointed officer, and no payment plans to worry about. You will be shielded from your creditors; you will remain in charge and in control of your income and assets.

Q8. How is this financial shield put in place and how will I be in control of it?
A8. Once the initial documents are received, we will file appropriate papers with your state’s Secretary of State. This puts the shield in place. You may keep it in place as long as it is needed. This normally discourages other creditors; however, should you experience a “trigger” event such as receiving a summons, a threatening letter from an attorney, or if you are just fearful that a creditor might sue, we then proceed to more aggressive protection steps.

Q9. How long does it take to put the shield in place?
A9. Generally the lien can be perfected within couple of weeks. There may be unique circumstances which require additional time but this is unusual. A delay will not affect the cost or outcome of the Program.

Q10. Does this include credit repair?
A10. No. We are not in the credit repair business. However, we work with a partner company that provides credit restoration. In their unique procedure, they are able to remove negative remarks from your credit reports. Their work frequently results in credit scores going up 60 – 100 points or more.

Q11. What do you mean by debt resolution?
A11. A better term is probably “debt solution” as what you are really looking for is a way to solve your debt problems. Resolving debt problems could include debt settlement, bankruptcy. or bill consolidation. We choose to solve your debt problems by establishing a true “financial shield”, which protects you totally while you are in the program.

Q12. Does the Shielded Circle Program include debt settlement negotiation?
A12. Our firm does not do debt settlements; we set the stage – the “leverage” – that makes an excellent debt settlement possible. We work with a partner company with an excellent track record in getting exceptionally low debt settlements for our clients. Some of our programs include full or partial payment for their service.

Q13. Is this credit card debt elimination?
A13. No, that term is a misnomer. The only true way to eliminate your credit card debt or mortgage debt is to pay it off. Don’t be fooled by anyone using this term. This is why our program is far superior to many others on the market. We make it possible for our clients to pay off their debts for pennies on the dollar and start over with a clean slate.

Q14, Can you legally eliminate debt?
A14. Only by paying it off. Many companies selling programs promising to legally eliminate your debt will use confrontational approaches in the courts to challenge the validity of credit cards and the extension of credit. The hole in these systems, no matter how good they sound and how logical they may appear, is that there will always be that one individual – the judge – over whom no one has control.

Q15, How does this differ from debt consolidation?
A15. In debt consolidation you move unsecured debt into secured debt, frequently by using a second mortgage on your home. While a lower interest rate may seem appealing, in the long run you will pay out much more with consolidation than with any other program. The only way to judge it is to actually do the math.

Q16. Is this the same as bill consolidation?
A16. Bill consolidation and debt consolidation are synonymous. We do neither. We negotiate for a 10% – 20% settlement, which we are frequently able to reach due to the efficiency of our system.

Q17. Will the Shielded Circle Program help me avoid bankruptcy?
Q17. Many people think they understand bankruptcy; however, it changed dramatically in October, 2005. It is no longer the sure fire way to walk away from your debts. Chapter 7 bankruptcy, which many people used to rid themselves of debt, is almost impossible to qualify for now. We feel this is the worst possible option for you – although your local attorney may tell you that it is your only choice.

Q18. Isn’t bankruptcy a lot cheaper than the Shielded Circle Program?
A18. Filing for bankruptcy is less than $300. An attorney may charge from $500 up to a few thousand dollars depending on the complexity of your case; however, that is not the true cost of a bankruptcy. Add to that the added interest payments you will have to make on house and car payments, the possibility of not being able to rent a house or apartment due to filing “bk”, the potential loss of any professional license, security clearance, etc. Many employers will not hire someone who has filed “bk”. None of that will happen to you in the Shielded Circle.

Q19. I see ads saying you can “get out of debt”. Are they legitimate?
A19. There are many competent debt counselors who can assist you in making and living within budgets. Some of these programs may take several years and confine you to tight budget. It may be a good solution for some. In the Shielded Circle, we include two months of Money Mastery for Life which is an excellent educational tool for learning how to establish and live within your means. Its interactive features make it superior to most credit counseling programs.

Q20. How can I keep from overspending?
A20. Credit cards come with very high interest rates and are very seductive. It is easy to overspend with them. We recommend using Debit Cards which require you to have the money on hand in the bank and do not charge interest fees.

Q21. Can your program provide debt relief or help me escape debt?
A21. What we provide is a financial shield. It will prevent your creditors from being able to touch your income, assets, or accounts. It will provide a solid and auditable defense and protection against your creditors. It provides a vehicle for solving your debts at a fraction of their face value.

Q22. Is your program legal?
A22. The Shielded Circle Program was co-written by several attorneys with over 50 combined years experience in tax law.

Q23. Does it take a long time for this “financial shield” to be put in place?
A23. If you are 90 days or more in arrears in your payments, you need to be in the program immediately. It takes only a couple of weeks to put the lien in place, but about 90 days for full protection.

Q24. Is this a “do-it-yourself” program with a lot of paperwork for me to do?
A24. We handle 99% of the work for you. This is not a do-it-yourself program. There is not a lot of material for you to learn or need to read. Plus, our program includes excellent client services. Our staff is there to help you when you need it.

Q25. Can my wages/salary be garnished?
A25. If you reside in PA, NC, SC, or TX or if you are self employed, there is little need for concern about your wages; however your assets and property could be at risk. . Employed clients not in those states do have exposure to wage garnishment. Asset and garnishment protection is a vital part of our system. This protection can take up to 90 days to perfect.

Q26. Is this the only program where I have exposure to garnishment?
A26. No. It is the same exposure you have under debt settlement. You will find a great deal of information in our program on how to avoid this exposure and details on how garnishment works. It is not the terrible event may people envision; however, going through the steps in our program will stop your creditors from being able to take your wages.

Q27. Can I pay by credit card?
A27. Yes

Q28. Are utility bills considered as unsecured debts?
A28. Yes, they are… but not paying them will result in your being blacklisted by them, which will potentially result in future problems for you. Something to think about before you decide to put them into the program.

Q29. Can collection agencies garnish my wages?
A29. Yes, they can if you are not in our program.

Q30. Can I ever get out of debt making minimum payments on credit card balances?
A30. Yes. Depending on the interest rate you are being charged, it may take 15 years or more for you to do so, assuming you make no more purchases. You could pay 60% or more of your current balance in interest.

Q31. I have an unsecured line of credit with BofA that I am not going to pay and I am giving them my privacy address. I also have a credit card with BofA that is current. Can I get away with continuing to pay and use this credit card or should I just stop paying it also?
A31. Two things will happen on your credit card: they will increase your interest to 29% or higher, and then reduce your credit limit significantly, probably to the amount you owe on the card currently. Certainly continue to use it if you wish. Be certain to move any money you have in a checking or savings account at BofA to a different bank. The same applies to any other bank.