(6) New Tropics!

Unlike many other agencies who abide by an hourly schedule, American Debt Solutions has enforced 24/7 customer support. Any clients enrolled with American Debt Solutions may now contact customer care should the client have any questions or concerns pertaining to their file. We feel customer support is key; and by having this enforced it should help strive both the customers peace of mind and of course - the companys goal to providing outstanding customer support.

American Debt Solutions has released new software for calculation purposes. This information is labeled as confidential, and is available to advisors, brokers and management upon request.

American Debt Solutions has now launched the new design for both the consumers and advisors! Within the consumer portal, you will find information about the services provided by American Debt Solutions, along with additional information pertaining to the industry. Should you have any questions, or comments in regards to the new designs please let us know.

American Debt Solutions has undergone unexpected growth! American Debt Solutions filed on April 17th, 2006 as American Debt Solutions, LLC. American Debt Solutions, LLC will own the DBA American Debt Freedom as of the above date. Terms of how we conduct business, management, and ethics as to how we work with our client(s) will not change. Should anyone require further information on the merge, or its name please contact our offices directly.

1/1/2006: The Office of the Comptroller

The Office of the Comptroller

The Office of the Comptroller of the Currency has required many creditors to double credit card minimum payments! If you have a Bank of America, Discover, Citibank, MBNA, Chase or any other major credit card, prepare yourself now.

Reduce your payments through Debt Management before your payments go up.

PLEASE DON'T LEAVE WITHOUT APPLYING. TIME IS RUNNING OUT

Want more information? Please visit:http://www.occ.treas.gov/

On April 20, 2005 President George W. Bush has signed the new bankruptcy law that changes the bankruptcy system in favor of creditors and against the interests of most consumers..

The most substantive changes become effective on October 17, 2005, as follows:

QUALIFICATION FOR CHAPTER 7 – “MEANS TESTING”

If your household income is greater than the state median income for a family of your size, the bankruptcy trustee may request that the court dismiss your case due to “abuse.”

The court will presume that you are ineligible for Chapter 7 bankruptcy if your current monthly income should, according to a list of permissible expense amounts, leave you with at least $100 per month to be repaid to your creditors. In such cases, you will have to repay your debts over a five-year period through more difficult Chapter 13.

To successfully argue against dismissal or conversion of your case to Chapter 13, you must demonstrate “special circumstances.”

If your income falls below the state median, the court may still dismiss your case for “abuse.”

MANDATORY CREDIT COUNSELLING AND EDUCATION

Every individual who files for bankruptcy must, within the 6 month prior to filing, receive and provide proof of mandatory credit counseling from an “approved” nonprofit budget and credit counseling agency.

You will not be permitted to discharge your debts under Chapter 7 or Chapter 13 unless you complete a mandatory debtor education course in personal financial management as approved by the U.S. Trustee.

If you have moved from a different state within the past two years, you may be subject to the laws of your former state of residence in connection with what property you are allowed to keep in Chapter 7.

Many additional restrictions will be applied.

USING BANKRUPTCY TO STOP CREDITORS

The new law limits your ability to stop creditors through the use of the “automatic stay”. If you have filed for bankruptcy within the past year and need to re-file because the first one was dismissed, your creditors can collect again from you 30 days after the new case is filed.

If you file for bankruptcy in order to stop an eviction proceeding, the landlord will be able to continue with the eviction if for any reason you fall behind on your new rental payments after the case is filed.

DOCUMENTS TO BE PROVIDED FOR YOUR BANKRUPTCY CASE

In addition to the list of creditors, schedules of assets, liabilities, income and expenses, debtors must provide:

Certificate of credit counseling
Pay stubs for the 60 days before filing your case
Tax returns or transcripts for the most recent tax year
Tax returns filed during the case including tax returns for prior years that had not been filed when the cases began
Failure to provide the documents within 45 days after the petition has been filed results on automatic dismissal of the case.

TIME BETWEEN FILING BANKRUPTCY CASES

You will not be eligible to receive a discharge of your debts in Chapter 7 if you received a prior discharge within 8 years of the new filing.

You will not be eligible to receive a discharge in Chapter 13 if you have filed a Chapter 7, 11 or 12 bankruptcy case within the 4 years prior to the date of filing of the pending case, or if you have filed a Chapter 13 case within 2 years of the pending case.