Debt Validation

With Debt Validation, credit restoration usually begins as soon as you enroll your unsecured debt accounts. The validation process starts when the creditors you owe sell the debt to third-party collection agencies, or begin collection practices. The Debt Validation firm then begins the process of requesting proof that the debt is, in fact, yours. If the collection company cannot prove the debt is yours, or validate the debt, the debt is forgiven. The process can take up to 36 months, and the payments can be less based on how many accounts are enrolled. Depending on the outcome of the program, some or all of the debts forgiven could be taxable as ordinary income. However, your tax professional would be best at advising you on this matter.

Debt Validation is a successful method for removing debt. Keep in mind, removal of that debt requires your accounts being sold to third-party collection agencies. This will have a negative effect on your credit health. With this option, your credit will be in a restoration process during the entire program. Any collection calls that you may receive are dealt with during the validation process.