Checklist Checklist

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  • #44 MORTGAGE FORECLOSURE HELP Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. “Foreclosure help” can describe legitimate professional services or scams.
    2. Verify exactly who is offering assistance.
    3. A government-sounding name does not prove government affiliation.
    4. Do not pay someone merely for promising to communicate with your lender.
    5. Never assume a modification is guaranteed.
    6. A lower payment can involve a longer repayment period.
    7. Delayed payments can sometimes be added to the loan.
    8. Interest can continue accumulating.
    9. Fees may be added.
    10. Escrow changes can alter future payments.
    11. A temporary forbearance is not necessarily forgiveness.
    12. You may still owe deferred amounts.
    13. Loan modification documents must be read carefully.
    14. Never sign incomplete documents.
    15. Keep copies of everything submitted.
    16. Verify all communications with the actual servicer.
    17. Don’t transfer title to someone simply because they promise to save the property.
    18. Don’t send mortgage payments to an unverified third party.
    19. Don’t ignore foreclosure notices while pursuing assistance.
    20. A legitimate professional should explain the limits of what they can accomplish.
    21. Lawyers, housing counselors and other professionals may perform different functions.
    22. Compare the cost of assistance with the value of the proposed service.
    23. Ask what happens if the lender rejects the proposal.
    24. Ask what happens if the foreclosure deadline arrives before a solution is reached.
    25. The most important question is “What exactly am I paying this company to do?”

    B. PREMIUM BUYER CHECKLIST

    PROVIDER

    ☐ Legal name
    ☐ Physical/contact information
    ☐ Licensing/credentials where applicable
    ☐ Complaint history where available
    ☐ Written contract
    ☐ Fee structure
    ☐ Refund/cancellation terms

    MORTGAGE

    ☐ Current balance
    ☐ Interest rate
    ☐ Payment
    ☐ Arrears
    ☐ Escrow
    ☐ Notice status
    ☐ Foreclosure status

    PROPOSED SOLUTION

    ☐ Modification
    ☐ Forbearance
    ☐ Reinstatement
    ☐ Refinance
    ☐ Sale
    ☐ Short sale
    ☐ Other

    DOCUMENTS

    ☐ Mortgage statement
    ☐ Loan documents
    ☐ Notices
    ☐ Payment history
    ☐ Income documentation
    ☐ Expense documentation
    ☐ Prior modification documents

    RED FLAGS

    ☐ Guaranteed result
    ☐ Large upfront fee
    ☐ Pressure to sign immediately
    ☐ Request to stop paying lender without clear basis
    ☐ Request to transfer property title
    ☐ Refusal to provide written terms
    ☐ Fake government affiliation

    FINAL QUESTION

    If this company disappears tomorrow, what actual legal or financial progress have I made?

  • #43 FORECLOSURE DEFENSE Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. Foreclosure defense is highly time-sensitive.
    2. Deadlines can vary by jurisdiction and procedure.
    3. Not every defense applies to every borrower.
    4. A foreclosure notice should not simply be ignored.
    5. The underlying loan documents matter.
    6. Payment history matters.
    7. Account errors can matter.
    8. Servicing history may matter.
    9. Modification history may matter.
    10. Prior agreements should be preserved.
    11. Communications with the lender/servicer may become important evidence.
    12. Court documents must be reviewed carefully.
    13. A lawyer cannot guarantee that foreclosure will be stopped.
    14. Litigation can be expensive.
    15. A temporary delay is not necessarily a permanent solution.
    16. A loan modification can change the payment but not necessarily eliminate the underlying debt.
    17. Short-sale or sale options may need consideration.
    18. Bankruptcy may interact with foreclosure but is not automatically the right solution.
    19. Mediation may be available in some jurisdictions.
    20. Do not assume a foreclosure-defense company is a law firm.
    21. Upfront-fee promises deserve scrutiny.
    22. Do not sign documents you do not understand simply because someone says they will “save the house.”
    23. Keep copies of everything.
    24. The strategy must address both the immediate deadline and the long-term housing/debt problem.
    25. The key question is “What legally and financially happens next?”

    B. PREMIUM BUYER CHECKLIST

    IMMEDIATE DOCUMENTS

    ☐ Mortgage/deed of trust
    ☐ Promissory note
    ☐ Payment history
    ☐ Default notices
    ☐ Acceleration notices
    ☐ Foreclosure notices
    ☐ Court documents
    ☐ Modification agreements
    ☐ Servicer correspondence
    ☐ Proof of payments

    TIMELINE

    Create:

    Loan → Payment Problem → Default → Notice → Legal Action → Current Deadline

    ☐ Every date documented
    ☐ Every deadline highlighted

    LAWYER

    ☐ Licensed
    ☐ Relevant foreclosure experience
    ☐ Experience with your jurisdiction
    ☐ Similar-case experience
    ☐ Written scope
    ☐ Fees
    ☐ Litigation costs
    ☐ Strategy

    ALTERNATIVES

    ☐ Reinstatement
    ☐ Modification
    ☐ Refinance where realistic
    ☐ Sale
    ☐ Short sale
    ☐ Mediation
    ☐ Bankruptcy/legal restructuring where appropriate
    ☐ Other negotiated resolution

    FINAL TEST

    ☐ I know my next deadline
    ☐ I know what happens if I miss it
    ☐ I know my legal options
    ☐ I know my financial alternatives
    ☐ I have preserved my documentation

    FINAL QUESTION

    What happens if the proposed defense delays foreclosure but does not solve the underlying affordability problem?

  • #42 CHAPTER 11 BANKRUPTCY Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. Chapter 11 is not simply “bankruptcy for big companies.”
    2. It can involve substantial legal and administrative complexity.
    3. Filing is only the beginning of the restructuring process.
    4. Professional fees can become substantial.
    5. Court processes can take considerable time.
    6. A business may need ongoing financing during the case.
    7. Cash-flow management becomes critical.
    8. Creditor negotiations can be complicated.
    9. Secured and unsecured creditors can have different interests.
    10. Existing contracts can become central to the restructuring.
    11. Leases can create important issues.
    12. Employees and payroll obligations must be managed.
    13. Taxes require careful attention.
    14. Valuation disputes can become significant.
    15. A proposed restructuring plan may not succeed.
    16. Creditors can object.
    17. Stakeholders may have competing interests.
    18. Management may or may not remain in control depending on circumstances.
    19. DIP financing can carry significant conditions and costs.
    20. New financing does not guarantee eventual recovery.
    21. A business can emerge from bankruptcy with a viable structure—or fail to reorganize successfully.
    22. A reorganization plan should be evaluated economically, not merely legally.
    23. Professional conflicts of interest should be understood.
    24. The cost of continuing the case must be modeled.
    25. The key question is “Can the reorganized business actually survive?”

    B. PREMIUM BUYER CHECKLIST

    BUSINESS DIAGNOSIS

    ☐ Current revenue
    ☐ Gross margin
    ☐ Operating expenses
    ☐ Cash position
    ☐ Debt
    ☐ Accounts payable
    ☐ Accounts receivable
    ☐ Tax obligations
    ☐ Lease obligations
    ☐ Employee obligations

    CAUSE OF DISTRESS

    ☐ Temporary liquidity issue
    ☐ Structural profitability issue
    ☐ Excessive leverage
    ☐ Customer loss
    ☐ Industry disruption
    ☐ Operational failure
    ☐ Management failure
    ☐ Other

    PROFESSIONAL TEAM

    ☐ Bankruptcy counsel
    ☐ Financial adviser
    ☐ Restructuring adviser
    ☐ Tax professionals
    ☐ Valuation support
    ☐ Other specialists

    RESTRUCTURING

    ☐ Debt reduction
    ☐ Debt extension
    ☐ Asset sales
    ☐ Contract restructuring
    ☐ Lease restructuring
    ☐ New financing
    ☐ Equity restructuring
    ☐ Operational restructuring

    SURVIVAL MODEL

    Calculate:

    Post-Reorganization Revenue

    −

    Post-Reorganization Operating Costs

    −

    Debt Service

    −

    Required Working Capital

    =

    Sustainable Cash Flow

    STRESS TEST

    ☐ Revenue −10%
    ☐ Revenue −20%
    ☐ Higher financing cost
    ☐ Major customer loss
    ☐ Six-month recovery delay

    FINAL QUESTION

    Does the proposed restructuring solve the cause of failure—or merely postpone it?

  • #41 BANKRUPTCY LAWYERS Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. Bankruptcy is a legal process, not simply a way to erase debt.
    2. Not every debt is treated the same way.
    3. Some debts may survive the bankruptcy process.
    4. The choice of bankruptcy chapter can materially change the outcome.
    5. Eligibility requirements matter.
    6. Your assets matter.
    7. Your income matters.
    8. Your household circumstances may matter.
    9. Recent financial transactions can receive scrutiny.
    10. Transfers of assets before filing can create serious problems.
    11. Accurate disclosure is critical.
    12. Hiding assets can create severe consequences.
    13. Filing bankruptcy can have significant credit consequences.
    14. Bankruptcy does not necessarily stop every type of legal obligation.
    15. Secured creditors have rights involving collateral.
    16. Co-signers and guarantors can create additional complications.
    17. Bankruptcy may affect a spouse differently depending on circumstances and jurisdiction.
    18. Attorney fees are only one part of the economic cost.
    19. Court costs and other expenses may apply.
    20. A lawyer promising a guaranteed result should trigger skepticism.
    21. A lawyer should explain alternatives, not merely sell bankruptcy.
    22. You should understand what happens to your home, vehicle, business and other major assets.
    23. You should understand which debts are potentially dischargeable and which may not be.
    24. Do not wait until an imminent foreclosure, lawsuit or levy without understanding the timing implications.
    25. The most important question is “What exactly happens to my assets and debts if I file?”

    B. PREMIUM BUYER CHECKLIST

    YOUR FINANCIAL PICTURE

    ☐ Complete creditor list
    ☐ Secured debts
    ☐ Unsecured debts
    ☐ Tax debts
    ☐ Student/education-related debts where applicable
    ☐ Lawsuits
    ☐ Judgments
    ☐ Collection accounts
    ☐ Monthly income
    ☐ Monthly expenses
    ☐ Assets
    ☐ Retirement accounts
    ☐ Real estate
    ☐ Vehicles
    ☐ Business interests

    LAWYER

    ☐ Licensed in relevant jurisdiction
    ☐ Bankruptcy specialization/experience
    ☐ Experience with cases resembling yours
    ☐ Actual attorney handling case identified
    ☐ Fee structure in writing
    ☐ Court costs identified
    ☐ Additional services identified
    ☐ Communication process established

    ALTERNATIVES

    ☐ Negotiation
    ☐ Payment arrangements
    ☐ Debt management
    ☐ Debt settlement
    ☐ Sale of assets
    ☐ Restructuring
    ☐ Bankruptcy

    ASSET TEST

    For every significant asset:

    ☐ Current value
    ☐ Amount owed
    ☐ Equity
    ☐ Ownership
    ☐ Potential treatment under applicable law

    DEBT TEST

    For every significant debt:

    ☐ Creditor
    ☐ Balance
    ☐ Secured/unsecured
    ☐ Status
    ☐ Potential treatment
    ☐ Co-signer/guarantor

    RED FLAGS

    ☐ “Guaranteed discharge”
    ☐ “Everyone qualifies”
    ☐ Pressure to file immediately
    ☐ Refusal to explain alternatives
    ☐ Unclear fee agreement
    ☐ Instructions to omit information
    ☐ No explanation of asset consequences

    FINAL QUESTION

    What will my financial life look like 12 months after filing—not merely the day I file?

  • #40 TAX LEVIES Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. A levy is different from a lien.
    2. A levy is an actual legal seizure of property to satisfy tax debt.
    3. Property and property rights can potentially be affected.
    4. Bank accounts can be affected.
    5. Wages can be affected under applicable procedures.
    6. Physical property can potentially be seized.
    7. Ignoring IRS collection notices is dangerous.
    8. Verify the underlying tax assessment.
    9. Verify the balance.
    10. Verify the tax years.
    11. Verify the notice history.
    12. Understand the deadline stated in the notice.
    13. The IRS generally must take specified steps before issuing a levy.
    14. The IRS says it will usually levy only after assessment, notice/demand, failure/refusal to pay, and a final notice/right-to-hearing step.
    15. Exceptions and special circumstances can exist.
    16. A payment arrangement may be an alternative where available.
    17. Collection delay may be possible in qualifying cases.
    18. An Offer in Compromise may be available to qualifying taxpayers.
    19. Penalty relief may sometimes apply.
    20. Missing returns can complicate resolution.
    21. Professional representation does not automatically stop every collection action.
    22. Verify any claim that someone can “stop the IRS” instantly.
    23. Do not pay an unverified company simply because it claims special IRS connections.
    24. Know what happens if the levy proceeds.
    25. The critical question is “What can I do before the next collection action occurs?”

    B. PREMIUM BUYER CHECKLIST

    IMMEDIATE TRIAGE

    ☐ Identify every IRS notice
    ☐ Identify deadline
    ☐ Identify tax years
    ☐ Verify balance
    ☐ Verify payment history
    ☐ Check current collection status
    ☐ Determine whether a levy notice has been issued

    PROPERTY/INCOME AT RISK

    ☐ Bank accounts
    ☐ Wages/income
    ☐ Receivables
    ☐ Vehicles
    ☐ Real estate
    ☐ Business assets
    ☐ Other property interests

    RESOLUTION OPTIONS

    ☐ Full payment
    ☐ Payment plan
    ☐ Offer in Compromise
    ☐ Collection delay
    ☐ Penalty relief
    ☐ Appeal/hearing rights where applicable

    The IRS currently directs taxpayers with tax debt toward several possible resolution paths, including payment plans, Offers in Compromise and collection-delay options depending on eligibility.

    PROFESSIONAL

    ☐ Credentials verified
    ☐ Immediate-action plan
    ☐ Written fee agreement
    ☐ Authorization explained
    ☐ Strategy explained
    ☐ Deadlines documented
    ☐ Failure scenario explained

    FINAL 24-HOUR AUDIT

    ☐ I know what notice I received
    ☐ I know the deadline
    ☐ I know the amount claimed
    ☐ I know the tax years involved
    ☐ I know whether a levy is actually threatened
    ☐ I know which resolution options may apply
    ☐ I have identified the next action

    FINAL QUESTION

    What happens if I do nothing before the deadline on my notice?

  • #39 TAX LIENS Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. A tax lien is not the same thing as a tax levy.
    2. A lien represents a legal claim securing the government’s interest in property.
    3. A lien can affect your ability to sell or refinance property.
    4. The existence and status of a lien should be verified.
    5. The amount claimed should be verified.
    6. The tax years involved should be verified.
    7. Filing and payment compliance can matter.
    8. Ignoring IRS correspondence can make matters worse.
    9. Payment arrangements may be available.
    10. A lien does not automatically mean your property has been seized.
    11. A levy is the seizure mechanism.
    12. Property can have complicated ownership structures.
    13. Real estate transactions can be affected.
    14. Credit implications can matter.
    15. Business assets can create additional complexity.
    16. Discharge/subordination/withdrawal questions can be highly situation-specific.
    17. Not every request will qualify.
    18. Professional assistance may be useful for complicated cases.
    19. Fees charged by professionals are separate from the tax debt.
    20. No legitimate professional can guarantee every IRS outcome.
    21. Tax debt may continue accruing interest and penalties.
    22. A proposed solution should be tied to the actual tax account.
    23. You should understand what happens after the proposed resolution.
    24. Do not confuse a professional’s marketing promise with an IRS determination.
    25. The first question is “What exactly is the status of the lien?”

    B. PREMIUM BUYER CHECKLIST

    ☐ Obtain IRS account information
    ☐ Identify tax years
    ☐ Verify balance
    ☐ Verify filing status
    ☐ Verify lien status
    ☐ Identify affected property
    ☐ Identify ownership
    ☐ Determine whether a sale/refinance is planned
    ☐ Review available payment/resolution options
    ☐ Understand professional fee
    ☐ Understand authorization
    ☐ Obtain proposed strategy in writing

    QUESTIONS

    ☐ Is the lien currently active?
    ☐ What property is affected?
    ☐ What would happen if I sold?
    ☐ What would happen if I refinanced?
    ☐ Is there a possible release/withdrawal/subordination/discharge pathway?
    ☐ What eligibility requirements apply?

    FINAL QUESTION

    What specific action am I taking to resolve the underlying tax debt—not merely the paperwork surrounding the lien?

  • #38 IRS TAX PROBLEMS Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. Do not assume an IRS notice is harmless.
    2. Do not ignore deadlines.
    3. Verify the amount claimed.
    4. Verify the tax years involved.
    5. Review your IRS account/transcripts.
    6. Determine whether returns are missing.
    7. Determine whether penalties were assessed.
    8. Determine whether interest has accumulated.
    9. Determine whether a lien exists.
    10. Determine whether levy activity is threatened or occurring.
    11. Don’t confuse a lien with a levy.
    12. A lien secures the government’s interest in property.
    13. A levy actually takes property to satisfy the debt.
    14. Payment plans may be available.
    15. An Offer in Compromise may be available to qualifying taxpayers.
    16. Collection may sometimes be temporarily delayed.
    17. Penalty relief may sometimes be available.
    18. Not every taxpayer qualifies for every option.
    19. Missing returns can limit available options.
    20. Interest and penalties may continue.
    21. A tax professional cannot simply erase a legitimate tax liability.
    22. Be skeptical of guaranteed outcomes.
    23. Be skeptical of urgent unsolicited “IRS relief” calls.
    24. Compare professional advice with information available directly from the IRS.
    25. The first step is usually understanding exactly what the IRS says you owe and why.

    B. PREMIUM BUYER CHECKLIST

    ACCOUNT

    ☐ Tax years
    ☐ Balance
    ☐ Tax assessed
    ☐ Penalties
    ☐ Interest
    ☐ Payment history
    ☐ Notices
    ☐ Filing status

    COMPLIANCE

    ☐ All returns filed
    ☐ Missing returns identified
    ☐ Tax records gathered
    ☐ Income records gathered
    ☐ Deductions/supporting documentation gathered

    COLLECTION

    ☐ Collection status
    ☐ Lien status
    ☐ Levy status
    ☐ Payment-plan eligibility
    ☐ Other resolution options

    PROFESSIONAL HELP

    ☐ Credentials
    ☐ Engagement scope
    ☐ Fee
    ☐ Authorization
    ☐ Strategy
    ☐ Timeline
    ☐ Failure scenario

    FINAL AUDIT

    ☐ I know what I owe
    ☐ I know which years are involved
    ☐ I have reviewed my IRS records
    ☐ I understand the next deadline
    ☐ I know what happens if I do nothing
    ☐ I know what options may apply

    FINAL QUESTION

    If I did nothing for the next 90 days, what could happen to my situation?

  • #37 TAX RESOLUTION Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. “Tax resolution” is not one single service.
    2. Different tax problems require different solutions.
    3. Filing missing returns may be necessary before some resolution options become available.
    4. Not every taxpayer qualifies for every relief option.
    5. An Offer in Compromise is not automatically available.
    6. A payment plan may be more appropriate than settlement in some circumstances.
    7. Temporary collection delay may be possible in qualifying situations.
    8. Penalty relief has its own eligibility requirements.
    9. A company cannot guarantee IRS acceptance.
    10. “We can settle your IRS debt for pennies on the dollar” can be misleading.
    11. Fees charged by a tax-resolution firm are separate from your IRS liability.
    12. You should understand what the professional is actually doing.
    13. Power-of-attorney/authorization arrangements should be understood.
    14. You should know whether returns are being prepared, amended or merely reviewed.
    15. Unfiled returns can complicate the situation.
    16. IRS notices should never simply be ignored.
    17. Deadlines can matter.
    18. Interest and penalties may continue.
    19. Tax-resolution advertising may simplify complicated eligibility rules.
    20. You should compare the professional’s proposed strategy with options available directly through the IRS.
    21. The IRS itself provides a Tax Debt Help tool for exploring possible options.
    22. You should receive a written fee agreement.
    23. You should know what happens if the proposed resolution fails.
    24. Paying a professional does not transfer ultimate responsibility for understanding your tax situation.
    25. The right question is “What resolution am I actually eligible for?”

    B. PREMIUM BUYER CHECKLIST

    TAX PROBLEM

    ☐ Tax year(s) identified
    ☐ Returns filed/missing
    ☐ Balance verified
    ☐ Penalties
    ☐ Interest
    ☐ Notices
    ☐ Collection status
    ☐ Liens
    ☐ Levies
    ☐ Appeals/disputes

    DOCUMENTS

    ☐ Tax returns
    ☐ IRS notices
    ☐ Account transcripts
    ☐ Payment history
    ☐ Income records
    ☐ Expense records
    ☐ Asset information
    ☐ Debt information

    PROFESSIONAL

    ☐ Credentials verified
    ☐ Experience with your specific issue
    ☐ Scope of engagement
    ☐ Fee structure
    ☐ Refund/cancellation provisions
    ☐ Communication procedures
    ☐ Authorization documents

    RESOLUTION OPTIONS

    Ask which of these are potentially relevant:

    ☐ Full payment
    ☐ Payment plan
    ☐ Offer in Compromise
    ☐ Collection delay
    ☐ Penalty relief
    ☐ Dispute/appeal

    These are among the options the IRS currently identifies for taxpayers who cannot immediately pay their tax debt in full.

    FINAL QUESTION

    What specific IRS mechanism is being pursued, and why do I appear to qualify for it?

  • #36 DEBT SETTLEMENT Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. Debt settlement is not the same as debt consolidation.
    2. It is not the same as debt management.
    3. Settlement does not guarantee that creditors will agree.
    4. Stopping payments can have serious consequences.
    5. Interest and fees may continue accumulating.
    6. Credit damage can occur.
    7. Collection activity may continue.
    8. Lawsuits are possible depending on circumstances.
    9. A settlement company cannot guarantee that every debt will be settled.
    10. Some companies charge fees that materially reduce savings.
    11. Upfront-fee promises should trigger scrutiny.
    12. The FTC specifically warns consumers about companies that charge before delivering debt-relief results.
    13. Consumers should understand exactly how fees are calculated.
    14. The program may take years.
    15. You may need to save money before offers are made.
    16. Some creditors may refuse settlement.
    17. Tax consequences may arise from forgiven debt depending on circumstances.
    18. Settled debts can affect future credit decisions.
    19. A settlement amount isn’t the same as the total economic cost of the program.
    20. A company should explain what happens if settlement fails.
    21. Consumers should know who controls any dedicated account.
    22. “Guaranteed debt reduction” is a major warning sign.
    23. Unexpected calls or texts demanding financial information should be treated cautiously.
    24. Compare self-directed, nonprofit counseling, debt-management and settlement alternatives where applicable.
    25. The real question is “What will this strategy cost me if it doesn’t work?”

    B. PREMIUM BUYER CHECKLIST

    DEBT INVENTORY

    ☐ Creditor
    ☐ Balance
    ☐ Interest rate
    ☐ Minimum payment
    ☐ Status
    ☐ Collection status
    ☐ Lawsuit status
    ☐ Secured/unsecured
    ☐ Delinquent/current

    ALTERNATIVES

    ☐ Self-directed repayment
    ☐ Creditor hardship options
    ☐ Nonprofit credit counseling
    ☐ Debt management plan
    ☐ Settlement
    ☐ Bankruptcy/legal advice where appropriate

    SETTLEMENT COMPANY

    ☐ Company identity verified
    ☐ Reputation investigated
    ☐ Fee structure documented
    ☐ Timeline documented
    ☐ Settlement assumptions documented
    ☐ Failure scenarios explained
    ☐ Cancellation terms reviewed
    ☐ Dedicated-account arrangements understood

    The FTC advises consumers to get fees, timing, terms and the potential negative consequences of stopping payments in writing before signing up.

    COST MODEL

    Calculate:

    Current Debt

    vs.

    Settlement Amount

    Program Fees

    Interest/Fees During Program

    Potential Tax Consequences

    Other Costs

    RED FLAGS

    ☐ Guaranteed settlement
    ☐ Guaranteed percentage reduction
    ☐ Large upfront payment
    ☐ Pressure to act immediately
    ☐ Instructions to ignore legal notices
    ☐ Claims of government affiliation
    ☐ Refusal to explain failure scenarios

    FINAL QUESTION

    What happens if none of my creditors accepts the proposed settlements?

  • #35 MERCHANT CASH ADVANCES Buyer Checklist You Need To Know Before You Spend Your Money. 60 Buyer-Beware Intelligence Points.

    Legal Information Notice: This checklist provides general educational information only. It is not legal advice, does not create an attorney-client relationship, and may not apply to your jurisdiction or circumstances. Laws and deadlines vary. Do not rely on this checklist for a specific legal decision or deadline; consult a qualified attorney licensed in the relevant jurisdiction. Do not submit confidential, privileged, or highly sensitive information through this page unless specifically instructed to do so.

    1. A merchant cash advance is not economically identical to a conventional loan.
    2. The headline “factor rate” can obscure the true cost.
    3. Frequent repayment can strain cash flow.
    4. Daily or weekly payments can become painful during slow periods.
    5. A high approval rate does not mean affordability.
    6. The financing can be extremely expensive.
    7. Stacking multiple advances can create a debt spiral.
    8. A second advance can worsen the first one’s cash-flow problem.
    9. Personal guarantees may create personal exposure.
    10. Confession-of-judgment provisions or similar contractual provisions may deserve specialist review where applicable.
    11. ACH withdrawals can create operational problems when cash flow falls.
    12. Revenue-based repayment does not eliminate economic risk.
    13. A business can generate revenue while still losing money.
    14. Financing inventory does not guarantee inventory will sell.
    15. Financing marketing does not guarantee customer acquisition.
    16. The promised use of funds should be tested against actual return.
    17. Broker fees may add to cost.
    18. Renewal offers can encourage additional borrowing.
    19. “Fast funding” can discourage careful comparison.
    20. The repayment structure matters as much as the amount received.
    21. A lower payment can simply mean a longer repayment period.
    22. The true dollar cost should be calculated.
    23. Legal documents may contain provisions that are easy to overlook.
    24. Multiple simultaneous advances can consume future revenue before it arrives.
    25. If the business needs another advance to make the current advance’s payments, the financing strategy is already in trouble.

    B. PREMIUM BUYER CHECKLIST

    TRUE COST

    ☐ Amount received
    ☐ Total repayment
    ☐ Factor rate
    ☐ Broker fees
    ☐ Origination fees
    ☐ Other fees
    ☐ Expected repayment period

    Calculate:

    Total Repayment − Net Cash Received = Financing Cost

    Then determine the approximate effective economic cost over the expected repayment period.

    REPAYMENT

    ☐ Daily amount
    ☐ Weekly amount
    ☐ Percentage-of-revenue mechanism
    ☐ ACH requirements
    ☐ Estimated payoff date
    ☐ Early payoff terms

    STACKING

    ☐ Existing advances
    ☐ Existing credit lines
    ☐ Credit cards
    ☐ Equipment debt
    ☐ Other short-term obligations

    CONTRACT

    ☐ Personal guarantee
    ☐ Default provisions
    ☐ Collateral
    ☐ Arbitration
    ☐ Legal remedies
    ☐ Payment authorization
    ☐ Broker compensation

    CASH-FLOW STRESS TEST

    ☐ Revenue −20%
    ☐ Revenue −40%
    ☐ One slow month
    ☐ Two slow months
    ☐ Major customer loss

    FINAL RULE

    Never evaluate the advance based solely on how quickly you receive the money.

    FINAL QUESTION

    How much of my future revenue am I giving away to receive today’s cash?