Debt Reduction Plan (DRP) Terms and Conditions
1. Acknowledgment of Hardship
You acknowledge and certify that, due to financial hardship or circumstances beyond your control, you are unable to meet the minimum payment requirements of your creditors under the standard DMP structure. You further acknowledge that you have provided accurate and complete information about your financial situation to support this determination.
2. Program Overview
The DRP offers an alternative path that seeks to resolve debts through settlement for less than the full amount owed. Under this program, creditors agree to forgive any remaining balance after receiving agreed upon payments over a 36-month period totaling 50% of the enrolled balance.
3. Disclosures and Risks
Creditors may report settled accounts as "settled for less than the full balance" to credit reporting agencies, which can negatively impact your credit report and credit score. This negative information can remain on your credit report for up to seven years from the date of first delinquency.
When your creditor forgives a portion of your debt, it may be reported by your creditor to the IRS as “discharge of indebtedness” income. You may wish to consult your tax advisor (e.g., an accountant or lawyer) to determine whether your individual circumstances may permit you to exclude any this from your reportable income due to insolvency or otherwise. For more information on tax ramifications to you personally, you may also wish to consult tax advisor and refer to the IRS website www.irs.gov to review IRS Publication 908 “Bankruptcy Tax Guide” and IRS Form 982, “Reduction of Tax Attributes Due to Discharge of Indebtedness”. Navicore Solutions is not a law firm and is not providing, and cannot provide, legal advice.
Creditors are not obligated to accept any settlement offer and may continue to pursue collections, including legal action, interest charges, late fees, and other penalties, until an agreement is reached and fully executed.
Failure to complete the DRP may result in creditors pursuing collections activities, possible legal action, additional fees and interest charges, and further negative impact to your credit score. Additionally, you may lose any previously negotiated benefits or concessions.
This is a voluntary program and you may discontinue participation at any time by providing written notice to Navicore Solutions.
Please return to the previous message and check the box to confirm your agreement with the terms.
To speak with a Client Relationship Specialist, please call 1-800-962-4557.