Important Considerations for Debt

CuraDebt is a debt relief company that offers services for unsecured debts and tax debts, primarily through debt settlement.

Here are some key points about CuraDebt:

• Services Offered:
  
  • Debt Settlement: They negotiate with creditors to settle debts for a lump sum amount, often less than the total owed. This applies to unsecured debts like credit card debt, personal loans, medical bills, and collections.
  • Tax Debt Relief: They assist with state or IRS tax issues, offering solutions like Offers in Compromise, Installment Agreements, and penalty abatement.
• How Debt Settlement Works (General Process):
  
  1. Free Consultation: You have a consultation to determine if you qualify for their program.
  2. Special Account: If you qualify, you begin depositing monthly funds (or a lump sum) into a special-purpose account.
  3. Negotiation: CuraDebt's team negotiates settlements with your creditors one by one. They also look for violations by creditors or collectors (like those under the FDCPA) to potentially reduce or dismiss the debt.
  4. Fee Structure: They typically charge a fee (often an average of 20% of the enrolled debt) only after a debt is successfully settled and you approve it. They advertise no upfront or monthly fees.

• Eligibility:
  
  • The minimum amount of unsecured debt required to qualify for their debt settlement program is often cited as being around $5,000 to $10,000, though this can vary by debt type and state.
  • Debt relief services are not available in all states.
• Important Considerations for Debt Settlement:
  
  • Credit Impact: The debt settlement process can negatively affect your credit score.
  • Risks: While the company works to settle debts, there's a risk that creditors may not agree to a settlement, or may continue collection efforts, which could include lawsuits.
  • Tax Consequences: Debt that is forgiven or settled for less than the full amount may be considered taxable income by the IRS.