Contents

INTRODUCTION ...............................................................................................1

What is Debt Settlement? .........................................................................................1

How to Use This Kit ................................................................................................2

CHAPTER 1. DEBT SETTLEMENT PROS AND CONS ...............................3

Debt Settlement Pros ...............................................................................................4

Debt Settlement Cons ..............................................................................................5

Should You Do It Yourself? .....................................................................................6

CHAPTER 2. CREDITORS AND THE COLLECTION PROCESS ..............9

The Players and Terms .............................................................................................9

The Collection Process ...........................................................................................11

CHAPTER 3. THE FAIR DEBT COLLECTION PRACTICES ACT ...........15

Contacting the Debtor .............................................................................................16

Prohibited Tactics ..................................................................................................16

Validating the Debt ................................................................................................17

Recourse against Collectors Violating the Law .........................................................18

The Original Creditor .............................................................................................18

CHAPTER 4. DEALING WITH CREDITORS AND COLLECTORS ........19

Getting Organized ...................................................................................................22

Notifying Creditors .................................................................................................23

Phone Contact with Creditors ................................................................................25

Letters/Notices from Collection Agencies ................................................................26

Creditors Contacting Friends, Relatives, or Neighbors .............................................29