Please share your experience with this debt relief company and provide your review and feedback, in the comments section below.
The goal of this page is to allow people to share information that may be important to help others to make a more informed decision regarding their experience with this debt relief company. Here are some potential questions you might be able to provide feedback about.
- How did you feel about the customer service experience you received?
- Was the company easy to communicate with before or after you became a client?
- Did the company respond to your communications promptly?
- What were the fees charged for the services you received?
- Did the company give you the terms and conditions for the program you were interested in before you gave them any personal information?
- Was the program successful for you and accomplish the goals you had when you entered the program?
- Did you have a really good experience you can share?
- Did you have a bad experience you want to share?
- Is there any other information you’d like people to know that might be considering the services of this company?
It is important to understand when reading comments below that they are the opinions of the individual posters and may not be representative of the overall impression of all consumers that may have or have not used the debt relief services of this company. But everyone does deserve to have an opportunity to express their opinion, even the debt relief company itself, be it good, bad, or indifferent.
I think (Compliance Slave) makes a great point here considering the worst case scenario. I believe that consumers expectations are so elevated due to the false marketing flooding the airwaves. From TV to Radio and the Internet. Many promises are made to consumers elevating their expectations to unattainable levels. Paying less than 100% of what you owe is still considered a great benefit to any consumer but consumers may need to follow up with some steps themselves to ensure the best possible results.
At the end of the day all clients absolutely save money even with the tax bill if applicable, but the forms on the IRS website certainly help. I can tell you that in almost all cases the clients can certainly qualify for the IRS exceptions.
The 401K should NOT play into the mix since they are retirement funds. I would suggest you contact our office and maybe even contact us with your CPA. You will quickly see that although you may have received the invoice, you can have a portion if not all of it discounted upon filling out the appropriate forms.
As for not being able to reach your representative. I find that very hard to believe since we have multiple people assigned to your account and all of them are available at any moment.
Please rest assured that if you have any concerns you can reach out to Alex Viecco or Dan Smith the co-founders.
They will speak with clients at any phase of the process.
Sincerely,
Alex Viecco
Vice President/ Co-Founder
New Era Debt Solutions
And that assumes you were 1099’ed on all of your debts! Unless they were all with Wells fargo, it’s really unlikely. If you aren’t happy with the service you received, that’s one thing, or, perhaps you received one 1099 on the forgiven debt and you had to pay….? Did you really receive 1099’s on all your forgiven debt last year? You aren’t just angry because you owed something?
http://www.irs.gov/individuals…
How do I know if I was insolvent?
You are insolvent when your total debts exceed the total fair market value of all of your assets. Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts.
How should I report the information and items needed to prove insolvency?
Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation.
To claim this exclusion, you must attach Form 982 to your federal income tax return. Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation. You must also reduce your tax attributes in Part II of Form 982.
This is NOT my company but… You say you paid roughly, in total, what you owed on your debts to pay them off including taxes and fees? Im not sure. In the first part you say they settled at 50-60%. Then you said it cost what you owed PLUS taxes and fees….? Did they settle at 100% or 55%?
In a typical three year program i assume?? That is NOT great but why would you complain?
Mine is a smaller company, but we received very few 1099’s for forgiven debt. I am not aware of any of our clients who were not considered insolvent by the fed at the time their debts were forgiven. Further, our avrage settlement was 31% over the last 9 months.
I’ll assume 15% fee + 55% debt + 25% fed tax (OF YOUR FORGIVEN AMOUNT) + 6% state tax? (OF YOUR FORGIVEN AMOUNT)
A $50,000 debt settles for $27,500
Plus fee $7500
Plus Fed Tax $5625
Plus?? state tax $1350
Total to get you out of $50,000 original debt= $42000
Saves you $8000 on original debt. Had you paid interest on that $50k for three years saves you considerably more.
If you are being honest ? then you still make out like a bandit.
This is NOT my company but… You say you paid roughly, in total, what you owed on your debts to pay them off including taxes and fees? Im not sure. In the first part you say they settled at 50-60%. Then you said it cost what you owed PLUS taxes and fees….? Did they settle at 100% or 55%?
In a typical three year program i assume?? That is NOT great but why would you complain?
Mine is a smaller company, but we received very few 1099’s for forgiven debt. I am not aware of any of our clients who were not considered insolvent by the fed at the time their debts were forgiven. Further, our avrage settlement was 31% over the last 9 months.
I’ll assume 15% fee + 55% debt + 25% fed tax (OF YOUR FORGIVEN AMOUNT) + 6% state tax? (OF YOUR FORGIVEN AMOUNT)
A $50,000 debt settles for $27,500
Plus fee $7500
Plus Fed Tax $5625
Plus?? state tax $1350
Total to get you out of $50,000 original debt= $42000
Saves you $8000 on original debt. Had you paid interest on that $50k for three years saves you considerably more.
If you are being honest ? then you still make out like a bandit.
And that assumes you were 1099’ed on all of your debts! Unless they were all with Wells fargo, it’s really unlikely. If you aren’t happy with the service you received, that’s one thing, or, perhaps you received one 1099 on the forgiven debt and you had to pay….? Did you really receive 1099’s on all your forgiven debt last year? You aren’t just angry because you owed something?
http://www.irs.gov/individuals/article/0,,id=179414,00.html
How do I know if I was insolvent?
You are insolvent when your total debts exceed the total fair market value of all of your assets. Assets include everything you own, e.g., your car, house, condominium, furniture, life insurance policies, stocks, other investments, or your pension and other retirement accounts.
How should I report the information and items needed to prove insolvency?
Use Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) to exclude canceled debt from income to the extent you were insolvent immediately before the cancellation. You were insolvent to the extent that your liabilities exceeded the fair market value of your assets immediately before the cancellation.
To claim this exclusion, you must attach Form 982 to your federal income tax return. Check box 1b on Form 982, and, on line 2, include the smaller of the amount of the debt canceled or the amount by which you were insolvent immediately prior to the cancellation. You must also reduce your tax attributes in Part II of Form 982.
Gosh I’m so impressed with New Era these people know there stuff . One conversation with them and I trust them completely . After a month of investigation what company to with not being able to pay credit counseling budgets made out for me by different agencies I’ve finally decided at least one thing New Era helps people . If you have to go with debt settlement these people actually have your best interest at heart . I’ve read complaints but consumers focus on the resolutions they provide that’s what matters. Again WOW I’m so impressed with them !
Thanks for the feedback.
Beware..This place made me believe that MOST ALL people can claim insolvency meaning they had no way of paying off the debts on their own and no way to tap into money to pay off what they owed, the debt was greater than their assets. However, I had money in my 401k and some jewelry, my car that equals out to more than I owed therefore I may have saved some money in that the creditors got 50% to 60% of what I owed but the REALITY is that I was considered solvent so that money that was “forgiven†by my creditors got added in as taxable income and I got tagged with an $8000 tax bill between the IRS and the great state of CA.. BEWARE and MAKE SURE you don’t own anything or have enough in your 401k (even if you can not get to it and use that money) before you do this as the State of CA and IRS are not so “forgiving†and want their money right away. If I add up what I owed it probably equaled out to what I ended up paying off, plus New Era’s fee and the taxes I ended up owing.. Was not that great of a deal for me and the same thing will happen to me this coming year being as they finally settled my last debt so again THAT “forgiven†debt gets tacked onto my income for 2010 which will be due in April so I now I have an ongoing monthly payment that never goes away and with each settlement seems to be worse. BEWARE!!!! My account guy was hard to reach and always seemed to have an attitude, not very customer-friendly.
Beware..This place made me believe that MOST ALL people can claim insolvency meaning they had no way of paying off the debts on their own and no way to tap into money to pay off what they owed, the debt was greater than their assets. However, I had money in my 401k and some jewelry, my car that equals out to more than I owed therefore I may have saved some money in that the creditors got 50% to 60% of what I owed but the REALITY is that I was considered solvent so that money that was “forgiven” by my creditors got added in as taxable income and I got tagged with an $8000 tax bill between the IRS and the great state of CA.. BEWARE and MAKE SURE you don’t own anything or have enough in your 401k (even if you can not get to it and use that money) before you do this as the State of CA and IRS are not so “forgiving” and want their money right away. If I add up what I owed it probably equaled out to what I ended up paying off, plus New Era’s fee and the taxes I ended up owing.. Was not that great of a deal for me and the same thing will happen to me this coming year being as they finally settled my last debt so again THAT “forgiven” debt gets tacked onto my income for 2010 which will be due in April so I now I have an ongoing monthly payment that never goes away and with each settlement seems to be worse. BEWARE!!!! My account guy was hard to reach and always seemed to have an attitude, not very customer-friendly.
I think (Compliance Slave) makes a great point here considering the worst case scenario. I believe that consumers expectations are so elevated due to the false marketing flooding the airwaves. From TV to Radio and the Internet. Many promises are made to consumers elevating their expectations to unattainable levels. Paying less than 100% of what you owe is still considered a great benefit to any consumer but consumers may need to follow up with some steps themselves to ensure the best possible results.
At the end of the day all clients absolutely save money even with the tax bill if applicable, but the forms on the IRS website certainly help. I can tell you that in almost all cases the clients can certainly qualify for the IRS exceptions.
The 401K should NOT play into the mix since they are retirement funds. I would suggest you contact our office and maybe even contact us with your CPA. You will quickly see that although you may have received the invoice, you can have a portion if not all of it discounted upon filling out the appropriate forms.
As for not being able to reach your representative. I find that very hard to believe since we have multiple people assigned to your account and all of them are available at any moment.
Please rest assured that if you have any concerns you can reach out to Alex Viecco or Dan Smith the co-founders.
They will speak with clients at any phase of the process.
Sincerely,
Alex Viecco
Vice President/ Co-Founder
New Era Debt Solutions