Frequently Asked Questions

Can AAA help me get a true loan?

Yes, but it will depend on someone’s credit score and debt-to-income for them to qualify. If someone does not qualify, then we share our debt relief program with them.


Will I have to pay taxes on the amount of the debt forgiven as a result of a successful negotiation?

For debts forgiven in excess of $600, some creditors might issue a 1099c. In such a case, you might be eligible to file form 982 along with your income tax return to reduce any tax debt. Read publication 4681 on the IRS website to find out more about the implications of cancelled debt and how to reduce any tax liabilities.

In a debt relief program, how are fees assessed and paid to your company?

There are no upfront fees. As a matter of fact, we don’t collect payment from you until one of your accounts has been properly resolved. When one of your creditors makes an offer, we will send you a written agreement for review and approval. Following receipt of the settlement payment, our fees are subsequently paid on a prorated basis.

Can you guarantee that my creditors won’t file a lawsuit against me?

No. Even though it doesn’t happen often, your creditors do have a legal right to litigate to enforce their claims. If a lawsuit is filed against one of your accounts, it’s typically done to pressure a settlement because trying to collect an unpaid debt is expensive and time-consuming for creditors. In the unlikely occasion that this happens, we have a devoted team that specializes in negotiating with the law firm to attempt and resolve the account prior to it going to court.

Does a debt relief program impact my credit score?

Your credit score will suffer if you fail to make your minimum monthly payments on time or if you let your credit cards become charge-offs after six months of nonpayment. Regardless of whether you sign up for a debt relief program, this is true. Negative items will start to have less of an impact on your credit score and you will be able to start rebuilding your credit more quickly if you are able to address your past-due accounts or negotiate a repayment plan for less than what you owe. You will need at least one open active positive account to build credit though.

Will I be able to enroll all of my debts in your program?

No. Our program focuses on unsecured debt like credit cards, medical bills and personal loans. Loans that are secured by collateral such as your home or an vehicle do not qualify for our program.


How long does it take to complete a debt relief program?

Despite the fact that every person’s circumstances are different and depend on how much debt you enroll in and how quickly you can save, our clients typically  finish a debt resolution program in 24 to 48 months.