What Are the Different Program Statuses?

TABLE OF CONTENTS

• 1. Financial Hardship Verification
• 2. Building Funds in Escrow
• 3. Initiating Negotiations
• 4. Securing a Settlement Offer
• 5. Disbursement of Funds
• 6. Repeat for Each Enrolled Creditor

The settlement process is the cornerstone of Debt Consultants Group (DCG)’s debt relief strategy. It is designed to significantly reduce your total unsecured debt by negotiating with creditors to accept less than what is owed—often 40% to 60% less. Below is a step-by-step breakdown of how this process works:

1. Financial Hardship Verification

Before any negotiations begin, we require documentation that verifies your business is experiencing financial hardship. This step is essential, as our Negotiations Team presents this evidence to creditors to justify the need for a reduced repayment.

Examples of acceptable documentation include:

• Cash flow statements showing negative operating margins

• Delinquency notices or collection letters from creditors

• Revenue reports reflecting significant declines

• Legal notices or pending lawsuits affecting business operations

This documentation helps build a compelling case for your debt reduction.

2. Building Funds in Escrow

While your case is being reviewed and prepared for negotiations, you’ll begin making scheduled weekly deposits into a secure third-party escrow account set up in your business's name. This account serves as your settlement fund.

Why is this important?

• It demonstrates to creditors that you are acting in good faith.

• It provides a pool of funds from which lump-sum settlements can be paid.

No funds are released from this account without your explicit approval.

3. Initiating Negotiations

Once your escrow account has accumulated sufficient funds and your case has cleared internal legal and underwriting review, our experienced Negotiations Team will begin direct outreach to your creditors. Their responsibilities include:

• Verifying the legitimacy and terms of the debt

• Presenting your verified financial hardship case

• Proposing a reduced settlement offer

• Negotiating to obtain the most favorable terms possible

Thanks to our long-standing relationships with many creditors and MCA companies, we’re often able to expedite this process and secure better outcomes than individuals might obtain on their own.

4. Securing a Settlement Offer

When a creditor agrees to a reduced payoff, you’ll be contacted immediately. We’ll present you with a clear summary of the offer, which includes:

• The original amount owed

• The negotiated settlement amount

• The payment terms or deadlines

• Any associated documentation

You remain in control—no settlement will be finalized or funded without your written consent.

5. Disbursement of Funds

Once you approve the settlement, funds are withdrawn from your escrow account and paid directly to the creditor in accordance with the agreed-upon terms. We also obtain and provide you with written confirmation of the settlement and a release of liability for that debt.

6. Repeat for Each Enrolled Creditor

This process is repeated with each creditor until all enrolled debts have been successfully negotiated and resolved. Over time, this method reduces your total financial obligation and positions your business for long-term recovery.

By using this structured, legally compliant settlement process, DCG empowers your business to regain financial control—without taking on new loans or facing the long-term consequences of bankruptcy. Your dedicated Case Manager will guide you every step of the way, ensuring you stay informed, confident, and on track toward debt freedom.