What is Debt Validation?

debt free

What is Debt Validation?

If you’re considering ways to become debt-free, you’ve likely looked into a debt relief method called debt validation, two of the most common debt relief methods. If you want to become debt-free, the experts at Pivotal Wealth can set you on the right path. Understanding debt validation can help you manage your debts, so today we’re sharing the ultimate guide to debt validation. 


All About Debt Validation

Debt validation is simply asking a credit agency to prove that you owe a specific debt. The right to request debt validation is protected under the FDCPA, or Fair Debt Collection Practices Act. 


Collection agencies can be difficult to deal with, especially if you don’t believe that you owe the debt that they are attempting to collect. When dealing with debt collectors, hiring a debt validation firm can make the process easier and keep things from getting out of hand.


Many people like the fact that credit restoration usually begins as soon as unsecured debt accounts are enrolled in a debt validation program. If the collection company cannot prove to the debt validation firm that the debt is yours, the debt will be forgiven. 

The debt validation process isn’t immediate. It can take up to three years, depending on how many accounts you have enrolled.


Your credit will be in a restoration process until the debts are forgiven. Until your debts clear the third-party collection agencies, there will be a negative effect on your credit health. Also, depending on the program’s outcome, some or all of the debts forgiven could be taxable as ordinary income.

Become Debt Free and Build Your Wealth

To learn more about the different debt relief methods and how you can get started on your way to living debt-free, contact Pivotal Wealth today! We’ll examine your personal financial situation, advise you on the best debt relief solutions available, and set you on the path towards building your wealth and a stronger financial future.


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Matt Lovelady is a co-founder and managing vice president of Pivotal Wealth. He has launched multiple businesses in the financial services space and is passionate about helping people become debt-free, build their wealth, and plan effectively for their retirement.