Program Glossary

A

Account Not Ready
Debt cannot be negotiated until more funds have accrued in the Dedicated Account or until the debt has been delinquent long enough.
ACH Monthly Debit
A financial transaction you make from a personal bank account into your Dedicated Account.
Additional Payment
A single deposit you make to your Dedicated Account that is not already included in the existing deposit schedule. Additional payment might help you get your next settlement sooner and accelerate your graduation date.
Advanced Negotiation
An enrolled debt has entered into litigation, which is being addressed by a third party.
Amendment to the Agreement
A document modifying the original agreement, such as adding an enrolled account.
Authorization Needed
An enrolled debt with a negotiated settlement that is awaiting your authorization.

C

Creditor
The creditor on an account at the time of enrollment in your Debt Relief program.
Current

One of the three debt phases. In this phase, a debt is being negotiated according to the strategy we customized for you. Within the Current phase, any of these negotiation activities could occur: Targeted Negotiation, Strategic Hold, Advanced Negotiation.

Customer ID
A unique identification assigned to each client.

D

Dashboard
A website at https://client.libertydebtrelief.com/https://client.paramountlaw.com/https://client.progresslaw.com/ where you can see your program status, debt negotiation activity, make Customer Service requests, manage your account information, and more.
Debt Settled

One of the three debt phases. In this phase, all payments on a settlement have been made and the creditor has cleared them. Within this phase, your debt is considered either Paid Off or Written Off.

Dedicated Account
An account you own and control into which you consistently make program deposits. As it grows, so does our ability to negotiate settlements with your creditors. Any changes to your deposit schedule or amount could put future and existing settlements in jeopardy, delay your graduation date, and make you ineligible for legal protection services.
DocuSign
An online system that offers a fast and secure way to obtain an electronic signature

F

Forth
The bank processors we use to process deposits from your personal bank account into your designated Dedicated Account.

G

Garnishment
When a law firm takes part of your wages and applies it to an account’s outstanding balance. Garnishment terms vary by state.

I

In Progress
One of the three debt phases. In this phase, an enrolled debt has an authorized settlement in progress. Within this phase, negotiation activities could occur and once a settlement offer is secured and approved the debt will be placed into a structured settlement.
Insolvent

When your debt exceeds your total assets. See also: 1099-c and IRS Form.

J

Judgment
A ruling determined by a judge or magistrate on a case.

L

A network of lawyers across the country who represent clients in debt negotiation and debt settlement litigation. If you qualify (you’ve made all your program deposits on time and in full), we’ll provide access to attorney representation through your legal protection plan. There are no additional fees for attorney services. However, you will be responsible for court fees and related costs.
Litigation
Legal action has been filed at your local court system, for one or more of your accounts

N

Negotiation Activity

Refers to the specific status of an enrolled debt as it progresses through your program. See Advanced Negotiation, Authorization Needed, Paid Off, Strategic Hold, Structured Settlement, Targeted Negotiation.

New Date
When you are requesting to reschedule a payment this would be the new date you wish to make your deposits into your Dedicated Account.

O

Original Balance
The balance on an account when the account was enrolled.

P

An enrolled debt that has been resolved, meaning that 100% of all payments for the negotiated amount have been processed.

Payment Date
The dates when you make deposits into your Dedicated Account. Your program ACH Monthly Debit can be on a monthly, split, or bi-weekly schedule.
Phase

The overarching status of an enrolled debt. There are three phases that each of your enrolled debts progresses through: Current, In Progress, Re-Negotiation and Debt Settled. In each debt phase, several types of negotiation or settlement activity can occur, but not all need to occur before the debt moves onto the next phase.

Program Milestone
As you are accumulating funds our negotiators are able to obtain settlements on your behalf. The program milestone will reflect any accounts that are in a structured settlement so you can see how far along you are from completing your debt relief program.
Program Savings
How much you save on a debt by enrolling in the debt relief program. Program savings is calculated by subtracting how much you would have paid back on your debts had you continued making your minimum payments from the settlement amount and all fees involved in your program.

R

Re-Negotiation

In the process of renegotiating new terms for this account.

Real Property
Any property attached directly to land such as your home, second/vacation homes, rental properties, or the land itself.
Routing Number
A nine digit number used to identify a financial institution.

S

Settled

One of the two debt phases. In this phase, all payments on a settlement have been made and the creditor has cleared them. Within this phase, your debt is considered either Paid Off or Written Off.

Settlement
An agreement between you and the creditor to resolve what you owe.
Settlement Amount
The negotiated settlement amount that you authorize on an enrolled debt.
Settlement Authorization
Your response to a settlement offer, accepting its terms.
Settlement Letter
A document detailing a specific account settlement, showing the terms and conditions of the settlement agreement.
Settlement Offer
Terms presented for your authorization detailing a negotiated settlement on an enrolled debt.
Settlement Percentage
The difference between the balance on an enrolled debt at the time of settlement and the settlement amount you authorized.
Settlement Voided

Your previous settlement terms were voided and we are now in the process of renegotiating new terms.

Strategic Hold
The negotiator is intentionally pausing negotiation of this debt to let variables play out in your favor.
Structured Settlement
A settlement negotiated with your creditor where the debt will be resolved for less than the current balance owed, paid in installments from your Dedicated Account.
Summons
A court document notifying you that legal action is being taken against you for one or more of your debts.

T

Targeted Negotiation
An enrolled debt that needs to accrue enough funds to enable us to start negotiations with a creditor, via a negotiator or other services.

U

Unsecured Debt
A debt not backed by an asset. Unsecured debt includes credit cards, medical bills, and any other type of credit that was extended without a collateral requirement.

W

Welcome Pack
Information you will receive as a new client, including Your Program Guide, which will be mailed to you the following week after you have made your first program deposit.
Written Off
A debt that was forgiven by the creditor. No more payments are necessary.

Z

Zero Percent Settlement
A settlement where the creditor has forgiven the entire debt, so you pay zero percent.

1

1099-C
A tax form issued by a creditor when a settlement yields savings of $600 or higher. You may be required to report this savings as income on your tax return unless you were insolvent at the time of the debt.

9

982 (IRS Form)
A tax form used to qualify for an insolvency exception with the Federal Government. If qualified, you will be deemed either totally or partially insolvent and can be exempt from being taxed on the debt amount forgiven.
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