95 Days

How I Made $65,000 of Credit Card
Debt Disappear in 90 Days!

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How could you turn your credit card debt into cold
hard cash without doing anything illegal? If you have
lots of debt like I did many years ago, and if you are
having difficulty making payments, don’t like making
payments, or have already stopped, I would like to
present you with a “once-in-a-lifetime“ opportunity to
turn what you now believe is “debt” into something
very valuable.
During and following my experience with debt, I
learned some very important lessons that I would first
like to share with you:
1. The “debt” I thought I had was actually tax free
money that I legally received from my creditors.
2. My creditors already factored into the “loan” the
chance that I would not pay the balance in full
someday.
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3. My creditors were very sneaky, they didn’t tell me
that they had a license to create money from nothing
and call it a loan, as if they lent their own money when
they really did no such thing.
4. I reorganized the way in which I owned my house
and other property, including my cash and banking
needs so that creditors had no way to take it from me.
5. Instead of paying creditors first with my available
cash, I could invest my cash into assets that could
later be used to pay creditors, either my current
creditors or future ones.
6. After my creditors were paid, I would still have my
cash and assets working for me. But I hated them, so
I never paid them, instead I paid myself first.
7. I built a stellar new credit profile with my new
business structure and reorganized asset plan and
began borrowing money without any personal liability.
8. After six years of applying my new knowledge I
became a millionaire and just a couple of years after
that, I had acquired a net worth of over five million
dollars!
The most powerful message I can give you about my
experience and what I’ve observed with tens of
thousands of success stories is that you must change
your habits if you want to solve your debt problems.
You cannot get out of debt the same way you got into
debt.
I sincerely hope that we can talk very soon.
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John Gliha
P. S. Please call me at my home office anytime, if I
answer the phone that means I have time for you. In
the meantime, send me an email or visit my website
and get as much free information as you can find.
www.johngliha.com
john@johngliha.com
321-747-0264
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Would you like to keep your next 18 credit
card payments? What could you have done
with all that money if you started 18 months
ago?
If you kept your next 18 credit card payments, and
invested that money into even the least risky
investment, you would have all of that money and
very likely, a little bonus from interest or dividends.
But what about creditors calling and suing me? I hear
this all the time, and although it is possible, you must
remember three rules of the game: 1. The risk of
being sued by creditors within 18 months of non-
payment almost does not exist and 2. If you are
sued, it will take about 6 to 12 months, in the worst
case, before the creditor could get a judgment. And
that is assuming the creditor actually wins the lawsuit.
And the third rule is that only one creditor can collect
at a time, the others must wait in line. So your
voluntary payments would become involuntary
payments and be reduced to no more than 1/3 of
what you were paying, plus you’d still have your cash
from the last two years of credit card payments for all
your creditors.
Why would this happen? Because of a federal law
that almost no attorney wants you to know about, it’s
called the Consumer Credit Protection Act.
This federal statute is adopted into law in all fifty
states; it imposes civil and criminal penalties against
employers who penalize employees for having any
debt problems. You can’t be fired because of debt or
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debt collections. Additionally, if one creditor is
garnishing your paycheck, it blocks all other creditors.
Taking this to the next level, my system will show you
how to become the first creditor, own the first right to
take your income and property, and therefore protect
it against all creditors, known and unknown.
As a worst case example, a wage garnishment of
$445 per month would replace voluntary credit card
payments of $1,250. While one creditor is taking this
much per month, the Consumer Credit Protection Act
blocks all other creditors until that garnishment pays
the first debt. Part of my system shows you how to
create the first debt and use it to block all creditors for
life.
Look at it like this you already have the bank’s money,
legally. What if you just keep it? The value of their
former cash flow drops to probably less than zero.
But what will you do with that cash you kept? What if
you bought stock in asset backed securities, made
money from other people’s ability and willingness to
pay their credit cards? Funny huh, but really, what if
you used that cash to invest it yourself?
“Investing” is a scary word for many, but let me just
tell you that I’m not talking about buying stock in the
stock market. Investing is within everyone’s ability
and as you should soon discover, moral and
necessary.
Let’s say you had $55,000 in credit card debt, with a
monthly total credit card debt payment of $1,250.
And let’s assume you have at least an adequate
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annual income that according to certain state and
federal laws, would allow all your creditors to take
only $445 per month in the absolute worst case
scenario (through a wage garnishment). This is a
typical example of someone’s risk or exposure to
creditors. Whether or not you think this is good or
bad, consider this, because this person is just terrified
of being sued, he pays the creditors all of his savings
and even borrows on his home and from a friend to
pay 65% of his total credit card debts.
He is out $35,750, and possibly still not out of debt
and his credit continues to look worse each month;
however, the banks won’t sue him now, he can be
thankful for that. But, the IRS will want their share of
the forgiven debt, taxing him on about $20,000. I
don’t know about you, but I always prefer owing the
IRS than a bank, don’t you? Yeah right.
If instead, you look at your total income and assets
and what is at risk if you keep your cash, then take
steps to eliminate that risk (you always have plenty of
time), then you could even reduce that monthly $445
to $0 and keep everything, all your property, income
and assets. This is what my system shows people
how to do in just a few months.
Then we show you how to file a two page document
with the state and use it to protect your cash, banking,
vehicles, property, home, and other non-wage
income! What!? That’s right, I’ll say it again, we
show you how to file a two page document with the
state and use it to protect your cash, banking,
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vehicles, property, home, and other non-wage
income!
Think about it like this, “debt” is a fiction. It implies
many things, brings preconditioned images into your
mind.
There is good news. This is all an illusion, a fiction.
I’ll prove it. Think of the total unsecured credit card
debt you have. Now let’s change one word in that
statement, change the word “debt” into “cash”. You
don’t have “debt”, you actually have cash; you either
have the cash or bought stuff with the cash, right? If
you can change your perception of debt, your
perspective, you can accept the ideas and strategies I
show my clients.
Now, add up all the credit accounts you have, going
by the total balance they each say you owe. When
you have the total, or an estimate, insert that into the
following statement, “I am so grateful for receiving
$x”. Understand that this is not taxable wage income,
dividends or lottery winnings. No, this is tax free, debt
free money, as long as you do not try to make
payment arrangements. That’s right, if you enter into
a payment plan, you could have serious tax
consequences relating to the forgiven or unpaid
balance.
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“You have the right to remain silent and
anything you say may be used against you in
a court of law…”
This is about the last thing my clients tell bill collectors
before they stop calling forever. It takes about 30
seconds of your time, but it will most likely be the last
call you get from them, ever!
Did you know that bill collectors who violate the Fair
Debt Collection Practices Act can be required to pay
you a $500 penalty? But this is a joke, because you
have to pay an attorney and all your court filing fees
to sue them first. Then you risk the chance of not
winning, this is the reason I show my clients how to
use the criminal statutes to stop the calls.
Instead, we advise these pirates that it is a crime to
continue making unwanted collection calls after
receiving written notification to stop. In fact, it is a
class 1 misdemeanor in most states, which means
they can be convicted and spend six months in jail.
Best of all, it only takes a few letters to get the state to
investigate them for the crime. You won’t have to hire
an attorney or sue them because your tax dollars go
to work for you in this situation.
This is not a new service or theoretical concept; it has
dramatically helped many thousands of people since
1993. It is the only debt service for consumers that is
legally available in all fifty states. Every other debt
service, consolidation, counseling, settlement,
negotiation, etc, are banned in at least one state.
Ours is legal in all states.
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The strategies you will learn in this service are the
first choice of many attorneys in every state, and 3600
counties, who really want to help their clients get out
of debt fast. You do not need an attorney for this
service, but if you have one, he or she can use your
account to help you without having to reinvent the
wheel since we have already completed all of the
necessary legal research.
Using our service will not result in taxes for unpaid
debts. If you settle or make alternate payment
arrangements with creditors they will send you a 1099
at the end of the year and then you’ll have to explain
to the IRS why you don’t have to pay taxes on the
money you didn’t pay creditors.
Stopping Unwanted Phone Calls
1: Follow this procedure if you do not change your
phone number or if you provide your new phone
number to the creditors to make it appear as if you
have in fact moved to a new residence. This
procedure applies to anyone who won’t stop calling
you, even creditors, even though they may claim not
to be liable under the Fair Debt Collection Practices
Act, they are liable under the Telephone Solicitations
Act and under the criminal statutes regarding
harassing and threatening telephone
communications.
STEP ONE – NEVER DISCUSS THE ACCOUNT
The first lesson in responding to unwanted calls from
creditors or debt collectors is that you must never
discuss the account that they are calling about.
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STEP TWO – COLLECT NAME, ADDRESS, AND
PHONE NUMBER
Your first concern is to obtain the caller’s full name,
mailing address and phone number.
STEP THREE – KEEP A PHONE LOG
Write this down in a log next to your phone along with
the time and date
STEP FOUR – DON’T GIVE OUT ANY
INFORMATION.
Next, never, never, never give out any information
about yourself to the caller, not your address, phone
number, banking information, social security number,
driver license number, nothing. Do not acknowledge
the accuracy or inaccuracy of any information they
provide.
If they do not have it, they don’t need it and it’s their
problem. You may need to confirm that they have the
right person in order to complete the next steps, but
give them nothing else. Remember that what you say
will be summarized or quoted in their call
management software database. Follow these steps
and you can use this to your advantage.
STEP FIVE – HIS RIGHT TO REMAIN SILENT
Next, inform the caller that the conversation is being
recorded, that he has the right to remain silent and
that anything he says may be used against him in a
court of law. Expect him to end the call at that point,
but be prepared to continue to explain that you do not
want to receive any more calls from this organization
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and that any further calls will constitute harassment
and a class 1 misdemeanor under state law.
STEP SIX – HIS PERSONAL RESPONSIBILITY OR
LIABILITY
Explain that if anyone calls you again from his
organization, that you will hold him personally
responsible and file a written complaint for telephone
harassment against him individually with the state
attorney general’s office.
STEP SEVEN – REQUEST VALIDATION
Next, inform the caller that you are requesting a
validation of the disputed account. Never indicate
that you refuse to pay and again, do not discuss
anything specific about the account.
STEP EIGHT – REQUEST THEIR “DO NOT CALL”
POLICY
Next, request a copy of their “do not call policy” as
required by the Federal Telephone Solicitations Act.
FINAL STEP – AGAIN, DO NOT GIVE OUT
INFORMATION
This procedure is absolutely effective at stopping
about 99% of all unwanted phone calls, without
regard to the matter about which they are calling.
2: In very few circumstances, you will have a
collector who thinks that the law does not apply to him
and who will ignore all of these responses. You can
pursue the complaint to the attorney general’s office,
but there is one more strategy you can apply that is
more effective.
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Actually, this strategy will take you longer than 30
seconds, but it is also very effective. Debt collectors
and creditors that are calling to collect from you are
trying to make a sale, just like any other sales call.
Legally, a collection call is considered soliciting. They
are selling you on the benefits of paying them what
they say you owe, in exchange for them not
continuing to harass you, not making any more claims
on your credit history and/or not suing you. That is
the implication anyway, some will even say it.
Consequently, the callers are monitored for their
productivity. A call without a “sale” (your verbal
commitment to make payments) is not productive and
they might call you again; however, a call without a
sale that substantially exceeds the average call time
for most calls of this nature will result in your account
being placed on the “do not call” list or listed as
“uncollectible,” in which case you will no longer
receive any calls.
This is a little time-consuming, but it works very well.
Your objective, if you must follow this strategy, is to
keep the caller on the phone for as long as possible.
The trick is to never discuss the collection account,
but make it appear as if you are sincere. Talk about
politics, collection laws, the evil banking system and
your political opinion about the Federal Reserve
Board. Talk as if you are not listening to them, or that
you are not smart enough to address their specific
questions. For example, Caller: “Sir, I need to know
when you intend on paying this bill.” You: “You
people are all the same, you called me last week.
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You know, this banking system has to go, it’s nothing
but evil.”
It does not really matter what you say, but:
1. Avoid discussing the collection account,
2. Do not give any payment information,
3. Do not make any commitments to pay, and
4. Sound sincere.
If it sounds like the caller is going to end the call, ask
for a supervisor; repeat what you just said all over
again even if the supervisor says he was listening.
This should double the call time, in many cases.
3: The next time you get that next unwanted phone
call, answer the phone and when the caller asks for
you, say “I wish you all would stop calling me, I just
got this phone and all the collection calls are burning
up all my minutes and I don’t know who this person is
anyway.”
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Bankruptcy is a brand, not a solution.
The truth about bankruptcy is that because of the new
legislation from October 2005, the only people that
qualify for a discharge in bankruptcy are those that
have nothing to lose anyway. Bankruptcy is a system
created by creditors that allows all of your creditors to
sue you at the same time when you file. Bankruptcy
attorneys won’t tell you these things because they
spent their entire career learning how to file
bankruptcies and that is all they know how to do.
The scary truth about filing bankruptcy is that is just
like being sued by all of your creditors at the same
time. You are required to list all creditors, even your
uncle from whom you borrowed $100 last year and
then you are required to notify them in writing of your
bankruptcy filing. Each creditor will then file a proof of
claim (another word for a lawsuit) against you and the
trustee will require you disclose all of your income,
property and assets and then decide what to sell and
who gets paid first, all without your approval and all in
public.
It is humiliating for ten years! Imagine standing in
front of an open court with about hundred strangers
and reviewing your reorganization plan as to what you
have and how you intend to pay all of your creditors!
Everything you discuss and everything you file as
required by the rules of the court is public and open
for all to see for generations to come.
Additionally, you will pay $3,000 to $5,000 dollars in
legal and filing fees and be forced into a 3 to 5 year
payment schedule. If you fail to make your payments,
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all your debts will become due immediately, you’ll lose
your bankruptcy filing and have to pay taxes on the
remaining balances to creditors.
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Zero Debt in 90 Days is an Expert System
published exclusively for the benefit of consumers
and for use by consumers or legal professionals.
I want show you how my expert system has saved
hundreds of thousands of people, tens of thousands
of dollars over the last fourteen years. I want to show
you how a small percentage of my subscribers have
utilized my methods to steadily increase their net
worth and financial literacy every month, quarter and
year. I want to introduce you to the very simple
principles of what it takes to exceed a net worth of
one million dollars in just five or six years.
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Your neighbor is a blood-sucking vampire.
You might have believed before reading this that
paying to settle your credit card debt was a way out.
Settlement companies are just the opposite. Instead,
the reality is that you are walking right into a trap set
by the very monster you’re trying to avoid.
The settlement system was created by the banking
system to induce people to pay more than they would
without it. It will exhaust your savings and cash flow
and your personal credit will suffer. Settlement also
creates additional taxes for unpaid balances, whether
or not you complete the three or five year program.
Settlement companies also charge you a whopping
15% of your total debt. And they conveniently avoid
telling you that some creditors like Citibank will not
settle with anyone. They also avoid telling you that
they hold your money for one year before making the
first settlement offer to any creditor. So you have to
deal with the collection calls, letters and any lawsuits.
Is it any wonder that debt settlement is outlawed in at
least seven states?
In a typical example, imagine someone with $60,000
of credit card debt who is promised by a settlement
service that he can get out of half of it. If he stays
with the three year payment plan, he could possibly
pay his way out of it, in addition to losing his cash.
But along with the service he is charged 15% of his
total debt ($9,000)! So if he pays his way out of debt
with is cash savings, he pays $30,000 plus $9,000.
But that is not the end of it. You might think $39,000
to get out of $60,000 of debt is a good deal, but wait
until you get a 1099 and have to pay a tax on the
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unpaid balances. You’d be left with a tax bill on
$21,000 the following year!
What is more is that no creditor has any legal
obligation to stop calling (without the proper
notification), just because you are working with a
settlement company. They will continue to call, and
your credit history will continue to suffer. Yes, don’t
think or assume that paying will fix your credit. One
more fact to consider, a growing number of creditors
actually have written policies stating that they refuse
to accept settlements from anyone, Citibank is just
one example. Other examples include Capital One
and Discover, and the list seems to be growing.
Settlement is just another way to pay; you’re left with
bad credit, no cash and more taxes and it will cost
you 15% of your total debt to get into this worse
situation. Duh.
This is an actual chat I had with a sales agent for a
debt settlement company in April of 2008. You might
think less of me by how the conversation went, but I
wanted to illustrate some very important facts.
info: Please wait for a site operator to respond.
info: You are now chatting with 'Ryan'
Ryan: Good Afternoon. How may I help you?
Gliha: Hi Ryan, are you a debt counseling service?
Ryan: We are a Debt Settlement service.
Gliha: Can I get my accounts paid off? I have $85,000
spread over 8 credit accounts.
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Ryan: Yes you can. Have you had a chance to go to
the "Our solutions" section of the website?
Gliha: What determines how much I will pay and over
what time?
Gliha: Yes.
Ryan: You get to determine that.
Gliha: Okay. I decide how much to pay creditors?
what if that is not enough?
Ryan: Our minimum payment requirement is $200
and our max term is 66 months.
Ryan: You decide upon a monthly payment that is
reasonable and realisitc.
Gliha: $200 is paid towards my 8 creditors for $85,000
within 66 months. That sounds like a good deal.
Ryan: $200 probably won't be enough.
Gliha: I can get out of debt for $13,200?
Ryan: No
Gliha: So then if I really don't decide, who does?
Gliha: Because if I'm deciding, I'll pay $13,200.
Ryan: Have you made it to the "payments" section of
the website?
Gliha: yes, but I still don't understand, where do I
come in and make an offer to settle?
Ryan: You don't make any offers to settle. That is
what the attorney does.
Gliha: Do all creditors accept the offers?
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Ryan: I am going to run some numbers for you so you
can understand what the payment structure looks like.
Gliha: I wanted to decide my payments though. Who
is making these numbers?
Ryan: Just give me one second and I will explain.
Ryan: One moment please
Gliha: I mean, what is the standard of how much is
decided to pay to settle? Who sets the standard?
Gliha: ok
Ryan: The lowest you can get your payments would
be around $858
Gliha: So what happened to me deciding how much?
Gliha: Okay, so how did you come up with this
number?
Ryan: You can choose to pay more if you like but that
is the lowest amount that you can pay to get the debt
settled out within the max time frame
Gliha: My annual income is $45,000 if you don't
include my wife, and you're saying I'd pay $56,628 to
my creditors?
Ryan: Yes.. Not a bad deal since you owe $85,000.
Gliha: Will this help my credit history?
Ryan: Everyone is different. It would depend on
where your credit is at right now
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Gliha: Well, if I don't pay on their terms, and offer to
pay them less, wouldn't it appear as "settled" on my
credit file?
Ryan: Yes it would. It would also be listed as a
collection account on your credit report.
Ryan: Those are considered derogatory accounts.
Gliha: So the answer is "No. It will not help my credit
history." Which is probably a good thing since my
good credit only got me lots of debt right?
Gliha: And what about the $19,000 I'd be forgiven
from paying. Do I pay taxes on that?
Gliha: Oh, I think it's $29,000, that might put me in a
different tax bracket, maybe even treated like a
"windfall" right?
Ryan: I wouldn't say the answer is no. We have a lot
of clients who's accounts are already in collections. A
paid collection regardless if it is reported as settled or
not is still going to be better than an outstanding
collection with a balance due.
Gliha: So what about the $29K of forgiven debt?
Ryan: Yes you will have to pay taxes on that amount.
Anything over $600 gets reported to the IRS as
unearned income.
Gliha: So I can my [ask] tax guy about that. And what
is your enrollment fee?
Ryan: We charge 16% of your total debt, along with a
montly fee of $59.99 a month for every month you are
in the program.
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Gliha: What?
Gliha: Is that calculated against the verified total of
$85,000 for today or next year when the total is over
$95,000 from not paying until they accept an offer to
settle?
Ryan: It is calculated at the amount of your debt upon
time of enrollment.
Gliha: You'll charge me $13,600 PLUS $3,959.34?!
Ryan: Yes.
Gliha: Is that tax deductible?
Ryan: You would have to ask your tax advisor.
Gliha: So I'd pay $56,628 PLUS $17,559.34? Will you
also handle the collection calls and any lawsuits if
they just continue calling me? Do they have any legal
duty to talk with you instead of me?
Gliha: Wow, have you ever added these things up, I'd
pay $74,187.34 PLUS taxes on $29,000 PLUS
whatever additional amounts due to the creditor's
interest and fees.
Ryan: No.. Give me a second and I will break down
these numbers for you. You are getting ahead of
yourself.
Gliha: thanks
Ryan: $55,774.
Ryan: That is the amount you will pay.
Gliha: How did you arrive at that number?
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Gliha: Did you add in your fees?
Ryan: This includes all the fees associated with the
program.
Ryan: May I have a counselor call you to explain over
the phone?
Gliha: You said at $858 x 66, it would be $56,628,
then %16 plus $3,959.35. Please explain.
Gliha: No, I'd like to get this in writing please.
Ryan: No I did not say that.
Gliha: Can you answer the question about handling
collection calls and lawsuits? Am I still responsible for
those?
Ryan: I said we charge a 16% fee plus 59.99 a month
for a max term of 66 months.
Ryan: I am typing as fast as I can. Please be patient
with me.
Gliha: Right, and I calculated this on my calculator.
Ryan: So what question would you like me to address
at this point? One at a time please.
Gliha: Sure sorry 'bout that.
Gliha: We'll come back to the %, but what happens
when I get collection calls, do they have to call you
instead?
Ryan: Yes. The attorney sends a letter of
representation. You are provided a phone # to the
Consumer Protection Law firm, which you can forward
onto your creditors.
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Gliha: Do I sign a retainer agreement with the
attorney? Is the attorney authorized to practice law in
my state of North Carolina?
Ryan: Yes. Of course.
Gliha: So if they sue me, he will represent me in NC?
Ryan: No.
Gliha: What good is the letter then?
Gliha: What rules govern the attorney's
representation, the Rules Governing the Professioal
Conduct of Attorney under what jurisdiction?
Ryan: That is a question you may want to research
through the FTC. I do not know.
Gliha: Okay, no problem.
Gliha: So what if I offer to pay only what they can
legally take from me, from my paycheck?
Ryan: Depending on your state that could be up to
25% of your pre taxed income.
Gliha: That's about 1/3 of what I was paying.
Gliha: But it's illegal to garnish in NC anyway and I
don't use a personal bank account or own any
property.
Ryan: OK.
Gliha: So now that I think about it, they can't legally
take anything from me.
Gliha: So, let me see if I get this, %16 of $85,000?
Ryan: In that case, I wouldn't worry about it.
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Gliha: Is that based on today's debt?
Gliha: And when will I know they accepted my offer?
Ryan: The 16% is based on the amount that you
enroll.16% of 85,000 is 13,6900
Ryan: oops
Ryan: 13,600
Gliha: sound favorable
Gliha: Do you make the offer as soon as I enroll, or
just hold the paymens for a while?
Ryan: plus 59.99 x's the number of months you are in
the program (66 mos max)
Gliha: right
Ryan: No we don't pay the bills for you. The savings is
designed to allow you to save up funds and once you
have done so, the attorneys will make a one time
lump sum offer.
Gliha: $13,600 plus $3,959 to your firm, plus $56,628
to the creditors -- HEY, do you ever have problems
with any creditors refusing to settle?
Ryan: You are still doing the math incorrectly.
Roughly $56,000 is ALL that you will have to pay
back. This includes the money for the creditors.
Gliha: But what about your fees?
Ryan: One moment please...
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Gliha: I'm sorry to take up so much time, it's a lot of
money though and I only have a few more questions
please.
Ryan: We settle out the amount you owe for about
45c on the dollar. In your case this is somewhere
around $38,.250 Plus the 16% of your total debt Plus
the $59.99 monthly fee which would be arount
$56,000
Gliha: Okay, great! I was hoping you'd say that.
Ryan: Which would be around $56k.
Gliha: And will all of my creditors want to accept the
settlement offer? And when is the offer made? How
long after I join the program are the settlement offers
made?
Ryan: The offers are made once you have saved
enough funds to settle out the account.
Gliha: How much time based on the example? Tell
me a time period, how many months, 2, 12, 24
Ryan: Generally the creditors are happy to accept the
offer because 1/2 of something is better than nothing
which is what they are currently receiving.
Gliha: Do you guarantee a 45% settlement on each
account? And do any creditors refuse settlement
offers?
Ryan: You can go online to the payment section of
our website and go over all three of those scenarios.
Gliha: You still haven't told me how long before you
typically make the offer.
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Ryan: No we do not.
Gliha: You do not guarantee what you just said?
Ryan: Yes I did.
Gliha: Why say it?
Gliha: Do all creditors accept your offers?
Gliha: Do any creditors refuse to settle?
Ryan: Which question do you want me to answer
first?
Gliha: Do all creditors accept your offers or do any
refuse to settle?
Ryan: Everyone's situation is different. It depends on
the specific state laws of your state and your personal
finance situation.
Gliha: Are you able to sell your program in all 50
states?
Ryan: We are able to advertise 45% settlements
based on past expreiences and that is why we say it.
Ryan: No, there are a few states that we do not do
business.
Gliha: Why do you not do business in some states?
Ryan: Because we don't have attorneys in them
Gliha: Actually, it is because settlement and related
services are now illegal in seven states.
Gliha: Which creditors will refuse to settle?
Ryan: OK, obviously you have done your research.
Why all the basic questions
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Ryan: I would have no way of knowing that
Gliha: Because I work for the FTC and am publishing
these results so that more states will want to outlaw
settlement and related scams.
Gliha: This conversation will be published along with a
list of others and present at a hearing before
Congress to amend certain legislation.
Ryan: Well I am happy to have answered all of your
questions.
Gliha: Actually, you were intentionally misleading.
Ryan: That is ok. I clearly broke down the cost
associated with the program and disclosed exactly
how the program works
Ryan: In what regard was I misleading?
Gliha: I already know the answers, and you should be
careful what you tell consumers. You can be held
individually responsible.
Ryan: Please clarify exactly what was misleading?
Ryan: This way I can address this with?
Gliha: There were simple answers to some of my
questions, and you should know or be reasonbly
expected to know, such as Citibank has a written
policy of refusing all settlement offers. And yes, your
service is in fact illegal in seven states, and NO, your
attorney cannot represent me, nor can he/she act in
my behalf and force creditors to not contact me.
Gliha: And, personally, I believe that any payment
arrangement, IF any, should be made on the objective
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standard of what can legally be taken, not what you
are scared into paying out of fear and ignorance. And
you are perpetrating this.
info: Your chat transcript will be sent to
john@johngliha.com at the end of your chat.
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But I’m current and paying my minimums each
month and my interest rates are pretty low
right now.
Not many people know about this so they think life is
good because they are paying the minimums each
month and they have good credit and their interest
rates are low. In a typical case like this, imagine
accidentally missing a payment or making a late
payment. Maybe you were out of town or forgot to
deposit the check. Just one late payment would
trigger “universal default” and all your unsecured
credit accounts would jump to an interest rate of at
least 29% or 39% immediately. It would create an
avalanche of debt from which you’d never recover.
The system is designed that way.
It has been proven many times, you cannot pay your
way out of debt or pay your way to better credit and
you certainly cannot borrow your way out of debt.
The same habits that got you into debt will NOT get
you out of debt.
Did you know that raising your interest rates is how
the bank tells you that it believes you are a greater
risk of not paying? Imagine how they make this
determination, consider all of the millions and billions
of statistics they’ve compiled over the years, do you
think the banking system is the most qualified expert
to tell you that your risk of not paying is getting
greater and greater? Absolutely! So if your rate is
increasing and you are not gaining any further
benefits from the credit accounts, or if you are not
paying the balance each month, why would you
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continue paying? Do you think paying more money
will help or improve your credit rating?
When the bank tells you that the risk of you
discontinuing payments is greater and greater, this
translates into, the risk to you and your property is
becoming greater also. So why continue the same
habits? It’s time to change those habits or you’ll just
have more risk, and less and less use of your money
and property.
You can only eliminate this risk by diverting your cash
payments into purchasing assets, investing. That’s
right, instead of paying $1,250 each month with
nothing more to show, you can buy… gold, real
estate, silver, securities, whatever!
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Oh yeah, here’s a good one, you can borrow
your way out of debt?
The rule here is that you borrowed your way into debt,
and you cannot use this same habit of borrowing to
get out of debt. You are left with a substantial or total
loss of cash, more debt, and eventually a worse debt
situation than before. The statistics show that 98% of
people to use consolidation as a means to solve their
debt problems have more debt within two years than
when they began the consolidation program. This is
another gimmick created by the banking system to
steal your money, much like settlement.
Consumer Debt Counseling is another gimmick
instituted by the banking system to encourage you to
continue paying and/or using the same habits that got
you into debt, promising that those same habits will
somehow magically get you out of debt. You will be
out of your cash flow and savings and still suffer a
worse credit rating. The bottom line here is that you
will certainly pay, without exception, more than your
current balance by using any of these services.
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Why not just pay them off with your cash?
Well, if you had the cash, you’d probably be
paying your credit card payments.
If you actually just paid off your debts with your cash,
your credit rating will drop and you will have
exhausted your cash or savings. Using your cash to
pay for debts (liabilities) directly is always a bad use
of money. It makes much better financial sense to
use your cash to invest and then use the resulting
cash flow from the asset you invested in to pay for
any liabilities (debts) you still have afterward. The
rule here is “always pay yourself first.”
Another one, the “snow ball method” s says pay down
your lowest account first and to continue using this
amount and apply it to each greater credit balance
until they are all paid. This is actually helpful for those
with only several thousand dollars of unsecured credit
card debt. The problem is that if you use this method
to pay off your credit, you haven’t learned any new
habits that will increase your net worth. If your aim is
only to get out of debt, it will leave you in a perpetual
lifetime cycle of “getting out of debt” instead of
learning new habits and focusing your time on
increasing your net worth and building wealth.
But I can negotiate with my creditors, they like
me. If someone owed you $100 and you could
legally take it from them with interest, and additional
fees and penalties, why would you “negotiate” with
them? Creditors do not negotiate because they have
nothing to gain that they can’t already get from you
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using the collection system already in place.
Creditors such as Citibank specifically has a written
policy that says they will not negotiate with any
settlement company.
In case you haven’t figured this out yet, the banking
system has created a deliberate economic cycle with
consumer credit cards. They profit at each stage, it
goes like this: They originate (counterfeit) “money” for
your credit account. This is based on your credit
history, and the better your credit history, and the
longer you continue paying, the more credit accounts
you can have. This cycle continues until you are not
able to continue paying on their terms. Then your
credit score goes down and your interest rates and
payments increase. Eventually you no longer benefit
from the use of these credit cards, are unable to use
them, will have no more available credit and then find
yourself in a collection process. Unless you pay your
credit card balance in full each month, you are
inevitably caught in this cycle and it will take its
course.
Settlement, bankruptcy, counseling and consolidation
are all part of the same system, to induce you to
continue paying in some way. The more payments
that the system can get from you, the more valuable
are their cash flows (receivables) and the more
dividends they can pay to shareholders.
The statistics show that if these methods help you get
out of debt, in nearly every example, you will need to
give up all of your cash and you will still lose your
credit history or borrowing power. The alternative is
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that the bank simply obtains a judgment lien and then
begins taking your income, property and assets
involuntarily. The bank profits from day one, they sell
an interest in your credit account to investors, they
have it insured and if you don’t pay, they claim it as a
loss and the tax payers pay for it (us) and then sell
the value of the account to a third party collection firm
who tacks on huge fines, penalties and attorney fees.
Remember that all of these systems, programs or
services that people believe will get them out of debt
were created over many years by many thousands of
attorneys working only for the benefit of the credit and
banking system. Your financial well being has never
been in their plan.
Many people will tell me or believe that they don’t
have debt problems, even if they are not paying their
balances in full each month. They say they have a
job, or two jobs and can easily make the minimum
payments, oh, and that their interest rates are very
low.
A business practice known as “universal default”
changes all of this, because if this person is late on
one payment, for any reason, maybe he forgot, was
out of town, didn’t tell the bank about his new account
number, whatever, the credit reporting services notify
all creditors that there was a late or missed payment
and immediately, all interest rates jump to usually
29% and 39%. Almost always, this is a disaster and
that’s party why I say that “more debt is inevitable”.
The system is designed for you to lose, and this is just
one way of insuring that.
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Request for Validation
This request is merely a formality, it does not protect
you or cause delay but it should be sent in response
to the first collection notice you receive from any
creditor and each debt collector. You should not
expect any response most of the time and any
responses you receive do not require another
response from you.
In fact, this letter says too much. It would be just as
sufficient and effective to send a request for validation
that stated only the following:
“This is not a refusal to pay, but a notice that your
claim is disputed. This is a request for validation
made pursuant to the Fair Debt Collection Practices
Act.”
Be sure to attach a copy of their collection letter for
reference. And always include the date.
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[Subscriber]
[Address]
[City state ZIP]
[Collector]
[Address]
[City State ZIP]
[Phone number]
[Date]
Re attached correspondence
Greetings:
Thank you for your recent inquiry. This is not a
refusal to pay, but a notice that your claim is disputed.
This is a request for validation made pursuant to the
Fair Debt Collection Practices Act. I dispute your debt
collection-related allegations, deny the same, and
demand strict proof and verification thereof. This
dispute, denial, and demand are made in accordance
with federal and state law.
If you are a third party debt collector, you will
need to provide documentation of your authority to act
in behalf of the assignor.
If you are seeking a settlement arrangement,
you will need to explain to me how it would benefit me
to pay you anything when your collection is
substantially restricted under the Consumer Credit
Protection Act, assuming that you eventually obtain a
judgment lien against me. I've already calculated
what you can possibly take from my paycheck, since
that is the only money or property I have, and it's
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much less than the minimum payments I was
struggling to make before, if not prohibited by law.
Furthermore, if you want to try and take my
money with a wage garnishment, it will protect me
against other creditors who might also be seeking to
garnish my wages. So please explain to me the
benefits of paying you anything voluntarily, especially
since any settlements would increase my taxes. Why
should I not use the cash I would be paying you
voluntarily, to directly benefit my family and my
personal needs first? Your client didn’t lose any
money anyway, in fact, it profited from the disputed
account from the moment it was originated.
Please limit your communication with me to writing
only. If I receive any telephone calls from your
company, I will consider them to constitute
harassment. Please be advised that unwanted
telephone calls are a class 1 misdemeanor in this
state and I will file a complaint against the caller with
the attorney general’s office. I maintain a telephone
log of each phone call and in some cases, make an
audio recording when necessary.
Be advised that you have the right to remain silent. If
you ignore this notice and contact me by telephone,
you and your employees agree to allow me to make
an audio recording of our conversation and you and
your employees agree to allow the recording and any
other information obtained to be used against you and
your employees in a court of law. I will accept only
your written communication.
Best regards,
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Quick Fix Credit
First I think it is important for you to know that credit
repair industry is full of deceptive and misleading
companies. This is another reason why it’s important
to work with a company which keeps your best
interests in mind. That being said, here are some
main elements which determine what a professional
credit repair company typically will or will not do:
1. Will assist you in ordering your free credit reports.
2. Will review your credit reports free of charge.
3. Will have an honest and caring attitude.
4. Will Work to answer any and all your questions in
detail.
5. Will address the “source” of the problem such as
collection companies and creditors.
When addressing only credit bureau records,
collectors can simply re report the same account
at a later date and negates the purpose of repairing
credit.
6. Will be in compliance with state laws by disclosing
important information such as:
a). Information Statement.
b). Contract for services.
c). Notice of cancellation (allowing you 72
hours to get a complete refund).
5. Will Not hint on “unlimited disputes”, which
suggests it can take an “unlimited” amount of time to
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complete the goal and creates questionable result
expectations.
6. Will Not promise results sooner than 30-45 days
as governed by the Fair Credit Reporting Act.
7. Will Not charge a fee per negative item removal.
8. Will Not participate in scams such as debt
consolidation.
In addition to the above steps a good rule of thumb to
add is to trust your own feelings you get when
speaking to the representative.
Was he/she professional and sincere?
Was he/she treating you as just another call or did he
show interest in truly helping you?
Was he/she willing to spend some time to explain and
educate you?
A credit repair company we can recommend for
professional service who will take care of their clients
needs is Top Score Enterprises.
www.thetopscore.com
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[name]
[address]
[city state ZIP]
SSN: 000-00-0000
DOB:
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
[Date].
Re credit history correction request
Greetings:
Please correct the following item appearing on my
credit report:
________
For the following reasons
[ ] Not My Account
[ ] Anti-dates the account by more than 7 years
[ ] Cannot Verify
[ ] item is not accurate
[ ] Paid as Agreed.
[ ] This inquiry was not authorized
Best regards,
[subscriber]
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What are the risks or consequences of using
the Zero Debt in 90 Days system? Right now
you have the most risk and exposure to creditors,
probably 100%. This means they can take everything
from you, your house, your good credit, your cash,
even your wage and investment income. They can
even attach other assets you own or maintain an
interest. So your risk to creditors will only diminish as
you follow the program.
As you begin learning our system and the basic
principles and applying them to your situation, your
risk and exposure to creditors will only diminish. For
those that follow every strategy, their risk to creditors
is eliminated. The only concern for most people is
what happens to their credit history.
What did good credit get you? Too much debt
right?
The credit system is designed to use your credit file to
manipulate you into continuing to pay but it is
inevitable that at some point you will not be able to
pay and keep a good score. Unless you are easily
paying your balances each month you cannot escape
a situation where the debt is too much. This is a
statistical fact.
The only thing they can do is send you paper
in the mail.
The magical part of this understanding comes when
you finally realize that the situation of “debt” you might
find yourself in, does not involve thugs showing up at
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your house to bust your kneecaps, kidnap your family
members or anything violent like that. The collection
of debt today only involves “paper in the mail”. I don’t
include phone calls in this explanation because once
you tell a caller that he has the right to remain silent
and that anything he says can and will be used
against him a court of law, usually no one from that
collection agency wants to call you ever again. But
think about what I just said, the debt collection
process involves nothing more than “paper in the
mail”, it is painless. And you can use your
understanding of this system to block all creditors
from using “paper in the mail” to take your stuff.
Anyone who is either being sued or for another
reason, concerned about being sued, explain that “we
have an expert system that provides them the most
protection to any lawsuits.” They will not need an
attorney to follow the process, this is why it’s an
expert system, it is easy to follow; we’ve done all the
hard work. If we have an attorney in their area, we
can get them representation if they want, at a
discounted price. If they have an attorney with an
open mind, willing to help and not trying to force them
to buy another service where the attorneys gets paid,
we can certainly help their attorney with our turn-key
expert system.
The trade off here is you get to keep your cash, invest
your money, build your net worth in spite of “debt” and
learn new habits for utilizing credit the right way.
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What Would Your Attorney Say?
Alan Driscoll had reluctantly made an appointment to
speak with his friend’s attorney Mr. Berger. Actually,
his friend Robert made the appointment and because
of that Alan felt obligated to at least accept a free
consultation.
Alan: Hello, Alan said to the receptionist. I’m Alan
Driscoll, here for my 1:30 appointment with Mr.
Berger.
Receptionist: Very good, please sign in here and
have a seat. He should be right with you.
Alan: Thank you.
Mr. Berger: (Walking into lobby and saying goodbye
to another client.) Jane, is my 1:30 here?
Alan: Yes, that’s me. Hello Mr. Berger.
Mr. Berger: Excellent, please come into my office and
have a seat.
Alan: To begin with, my friend Robert said you could
help me out of lots of credit card debt.
Mr. Berger: Possibly, what is your situation?
Alan: Well, my parents always taught me to pay my
debts and in fact, never to keep large debts for more
than several years. I’m not sure how this happened,
but I just realized the other day that even though I’ve
been making my payments on my credit cards, I may
not be able to continue doing that by next year.
Mr. Berger: How much debt are we talking about?
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Alan: It’s about $45,000 right now, six accounts.
Mr. Berger: I would guess that you knew of this
possibility, not being able to pay this, at least a few
years ago right?
Alan: Well, yes, but I thought I could catch up or pay
them down to something manageable.
Mr. Berger: Okay, and is there anything else you
want to tell me?
Alan: No, why?
Mr. Berger: I know it’s not easy for you to come here,
especially on your friend’s recommendation, so what
has motivated you to come here today?
Alan: You’re right. Yes, well, I guess one of my
payments was received late and now my interest
rates have jumped to over 30% on all my credit
accounts. My minimum payments are outrageous
and at these rates, Sarah and I will never be able to
catch up.
Mr. Berger: Yes, you can thank “Universal Default”
for that. It sounds like paying them off quickly is a
good idea.
Alan: Yes, and we’ve been discussing this, we might
come close to paying them all off with our savings and
maybe selling the second car, but then we’d have no
cash for at least several more years.
Mr. Berger: So what do you think I can do for you?
Alan: Options, I’m looking for other options. But I
want to learn something from this, what did I do
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wrong? What can I do now to correct the situation
without giving up all my cash?
Mr. Berger: Okay, let’s examine this more closely and
maybe you can tell me the answer. First, imagine
paying 60% to settle the first credit account,
whichever one you decide.
Alan: Okay, and if I did that it would be one less debt,
and we’d still have a decent amount of cash left.
Mr. Berger: And how would that credit item appear on
your credit history?
Alan: Well, I don’t know, I never considered that.
What do you mean?
Mr. Berger: By law, the creditor would be required to
report that account accurately, and in that case, it
would be reported as “settled”.
Alan: Is that good?
Mr. Berger: You tell me, if I am the next creditor and I
pull your credit report (since I have that right as your
creditor), and I see that you were willing to pay a
settlement, wouldn’t I tell my people to call you quickly
and try to get a settlement also?
Alan: I see, makes sense. So by paying the
settlement like we were thinking, only to one creditor,
it would invite the others to expect payment as well.
Mr. Berger: Is that good for you?
Alan: No.
Mr. Berger: As you know, my business partner is a
retired CEO and he has lots of inside knowledge of
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the banking world. I’ve learned a few things from him,
for example, if you paid to settle for 60%, you would
be left with a federal income tax liability on the 40%
that you didn’t pay.
Alan: What?!
Mr. Berger: Imagine settling your total debt by 60%.
That would increase your income tax by 40% of
$45,000 in just one year. You’d certainly be in a
higher tax bracket and without even getting a raise.
Could you afford to pay those taxes, remembering
that the higher tax bracket would not only tax the
unpaid difference but be applied against your entire
income? One more important consideration, the
settlement company will charge you 15% of your total
debt to provide the service. They will have you stop
making payments for at least a year in the hopes of
offering less. What they won’t tell you is that a
growing number of creditors are refusing to accept
any settlement offers.
Alan: Well if that’s true, why is settlement such a
popular option; I mean I hear so much about it,
everyone I’ve talked to says pay to settle. I talked
with two attorneys and they said the same thing.
Mr. Berger: It’s the “public”. Did you know that the
legal definition of “public” is “That vast multitude,
which includes the ignorant, the unthinking, and the
credulous, who, in making purchases, do not stop to
analyze, but are governed by appearance and
general impressions.” Now, I memorized that
definition because it is so important to understand, but
I forget the citation, it’s from Ballentine’s Law
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Dictionary. This is what the Supreme Court, your
government, thinks about the people who put them in
office. People will pay out of fear believing that
payment will magically fix their credit.
Alan: I see.
Mr. Berger: What’s more, is that nearly every “other”
attorney you talk with has specialized and invested
many hours and many dollars into learning the form
systems of bankruptcy and litigation. This is the only
“service” they know, it’s the only thing they are
prepared to sell you. They will sell you only what they
know, not necessarily a solution to your problem. To
test this, talk with any other attorney about this
subject and they will never analyze your financial risk
or exposure to creditors. They will never explain how
the Consumer Credit Protection Act will protect you
from creditors. They will never show you how to use
credit the proper way. This is not in their language.
They will talk about your debt in terms of what
everyone says you owe, not in terms of your ability to
pay.
Alan: Can you explain this?
Mr. Berger: Yes. If you had a million dollars of debt,
and an annual income of $65,000, would you rather
pay that debt off based upon the total debt with
interest, or based upon your ability to pay. In other
words, which is better for you, paying a percentage of
what they say you owe (million dollars), or a
percentage of what you can afford (your income)?
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Alan: Duh. That’s a no-brainer, my ability to pay of
course!
Mr. Berger: Exactly, and what most people never
recognize is that good credit got them into lots of debt
that they could not pay. That’s the first problem. The
second is that they got into lots of debt by spending
money. Because they never recognize these two
facts, they continue the same habits in trying to get
out of debt. They try to fix their credit history and
believe they can fix it by… guess what…
Alan: Spending money.
Mr. Berger: Exactly. You cannot get out of debt
using the same principles or habits that got you into
debt.
Alan: I’m beginning to think that settlement is a scam.
But still, I have this debt, how does understanding this
solve my debt problem?
Mr. Berger: Patience please, I’m almost ready for you
to tell me the answer.
Alan: Okay Mr. Berger.
Mr. Berger: My CEO friend retired a multi-millionaire.
He made most of his money investing in consumer
debt such as asset backed securities and mortgages.
He told me that creditors, such as the ones you have
credit with, typically sell unpaid credit accounts after
six months of non-payment for less than 2% of the
debt. This is known as a “charge-off”.
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Alan: Why would they be willing to accept 2% of the
amount owed from debt collectors and usually 50%
from consumers?
Mr. Berger: It’s just like anything else, because
consumers are willing to pay that much; they think it’s
a good deal. It’s kind of like if I’m selling cars, and
you came to my lot to buy a car. I have a car for sale
that I know I want so much money for, so I raise the
sticker price substantially and tell you I’m giving you a
special deal, today only, if you are willing to pay a little
less than the sticker price. You think you’re getting a
good deal and I am selling the car for far more than I
expected to sell it for.
Alan: Now I’m felling pretty stupid.
Mr. Berger: Well, don’t, just stay with me here. Back
to what I was saying, you’d think the reason why they
sell for a 98% discount to third party collectors and
not consumers is because of the volume purchase.
But whatever volume that is, it is far less than the total
volume available to the creditors in the shear number
of customers they have. If they made the same offer
to all of their customers at once, they stand to make
much more money than by selling to debt collectors.
Like I said, they take more because they can,
because the people paying do not stop to analyze and
are governed by fear and general impression.
Alan: So settlement sounds like a bad idea. But what
are the consequences if I don’t pay? I mean, my
credit history really is a factor here. I know it helped
get me into debt, but I still need it… right?
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Mr. Berger: Do you need credit to buy things?
Alan: Mostly, yes. But my insurance company
checks it, and so does my employer.
Mr. Berger: Let’s focus on using credit to buy things.
How do big corporations buy things on credit, enter
into lease agreements and incur other expenses on
credit? Do you think they have some foolish
employee letting the company use his personal
credit? No, they have a business credit profile.
Alan: How can a business credit profile help my need
for credit?
Mr. Berger: Businesses are “persons” to, it’s a legal
status. A corporation is a person. A corporation can
obtain and use credit, borrow money, etc. The
difference between a business and you however is
that a business profits from borrowing and a
consumer borrows as much as his income allows him
to. A business plans ways to acquire debt for profit
while a consumer is surprised by debt.
Alan: If I had a corporation could I use it to buy the
next car that Sarah and I have planned for next year?
Mr. Berger: Of course. But remember this, if you’re
going to use the corporation to buy a liability, wouldn’t
it be just as easy to buy an asset on credit and use
that to offset or even pay for the liability (the car)?
Alan: Wow, I get it; I know exactly what you’re
saying. So I know the answer to my next question, I
can use corporate credit to refinance our house.
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Mr. Berger: Yes, absolutely. And each time you
purchase something on credit with your corporation,
its net worth increases. It can also diminish, but if
planned properly, the value of the corporation
increases with each purchase. In the example of
refinancing your house, why don’t you simply
purchase other mortgages and use that income to
offset your mortgage payments?
Alan: Okay, we have all this cash, how do we
incorporate? Doesn’t that cost millions of dollars?
Mr. Berger: It can, it depends on which tool you need.
If my business or investment objective requires the
use of a bank which has been doing business for a
number of years, I can spend millions of dollars to
acquire the bank and then use it as a tool for my other
business objective. In your case, your “business
objective” is to use a corporation as a more
sophisticated means of increasing your net worth,
buying power and most importantly, avoiding personal
liability. In your case, you can use two types of
corporate structures, one is a “C” corporation which
requires a board of directors and other formalities,
which you may not be ready for, and the second is a
corporate partnership, or a Limited Liability Company
(LLC).
Alan: I don’t know of any board of directors, so
maybe I’d go for the LLC. Who is my partner?
Mr. Berger: It should not be your wife, you need at
least one other person to own the LLC with you in
order to obtain the legal corporate protection known
as “charging order protection”.
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Alan: Okay Mr. Berger, this is making my head spin,
now I understand that I have a viable credit
alternative, so this is not a factor in our decision
making any more. How can we use this cash then?
Mr. Berger: You tell me. We already discussed that
using cash to pay creditors directly exposes you to
more liability from other creditors and more taxes.
The super wealthy follow a different principle which I
alluded to earlier. They pay for liabilities (such as
credit card debt) by using their cash to purchase
assets. The income and equity from these assets is
then used to pay for or offset the costs of the
liabilities. Using your cash this way is extremely
intelligent and exactly the practice that makes people
wealthy. I mean, just imagine if you practiced that
one habit and never had any debt. If you purchased
assets always before paying for liabilities, and used
the assets to pay for the liabilities, when the debt was
paid on the liabilities, you’d still have the income and
equity from the assets.
The famous billionaire, Warren Buffet, followed this
same principle for his entire career. To begin his
career as a professional investor, he purchased two
insurance companies and used them as tools to
acquire ownership in other companies and each time
he purchased a new company (with credit), his
corporate net worth increased. He did this for about
forty years until his net worth reached close to $100
Billion dollars.
Alan: Wow, okay so why didn’t I learn any of this in
school?
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Mr. Berger: I’m not sure, but I like to wonder why
there are no law classes in school, but they have
driver education.
Alan: Okay Mr. Berger, I’m not blaming the
educational system, I do take responsibility for my
situation. Now what if I did not have the cash that
Sarah and I have saved over the years? What if I had
almost no cash?
Mr. Berger: It would just take you a little longer to
gain momentum with the corporation and buying
assets.
Alan: Okay, so we’re fortunate.
Mr. Berger: Yes, now let me share another principle
with you. If you pay to settle debts, this includes filing
bankruptcy, even consolidation and counseling, you
are paying a percentage of what everyone says you
owe over a short period of time. If you calculated the
yield on this practice, that is the interest rate you’d be
paying to creditors because of the time value of
money, it could be over a hundred percent. Anytime
you pay a debt earlier than required in the original
arrangement, the real interest rate increases
dramatically.
Alan: Why is consolidation included under the
category of paying to settle?
Mr. Berger: A payment arrangement of any kind is
the same as settlement, just the rate changes.
Consolidation by exchanging your unsecured debt for
secured debt against your home equity is just another
way to pay and keeps you in debt; in fact it greatly
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diminishes your net worth. You can verify this with a
certified public accountant if you show him the
balance sheet. Did you know that 98% of people who
use consolidation are deeper in debt within two years
than before they consolidated?
Alan: Okay, and what about bankruptcy?
Mr. Berger: Those who can qualify for Chapter 7
where they don’t have to pay anyone, are already
destitute and cannot benefit from the filing anyway.
Anyone who qualifies for a Chapter 7 will not obtain
greater benefits than if he or she never filed.
Everyone else must meet a payment schedule under
Chapter 13 rules. It is nothing different than requiring
every one of your creditors to sue you at the same
time; they merely file a piece of paper called a “proof
of claim”. Then a trustee decides what will be done
with all of your income and property and who will be
paid first. I mean, I can easily appeal to your fear, get
your wife in here and scare her to; then I can sell you
bankruptcy for about $3,500 plus filing fees, have my
paralegal prepare all the forms and get you into a
payment plan for three years. That would be easy
money for me, and very detrimental for you, but that’s
how most attorneys operate, they don’t care.
Alan: Okay, say no more, I got it.
Mr. Berger: So my point is, instead of paying a
percentage of what everyone says you owe over a
relatively short period of time, wouldn’t you rather pay
a percentage of your ability to pay, over a long period
of time?
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Alan: Sure, how can I do this?
Mr. Berger: If you plan it properly, no matter what
your situation when you begin, even if you are
beginning with a judgment lien and wage
garnishment, you can protect everything you own,
your bank account, home equity, cars, boats, etc.,
from creditors. The only property remaining exposed
to creditors is your paycheck, and their ability to take
that is substantially limited by the Consumer Credit
Protection Act.
Alan: Okay, never heard of that but I remember you
just mentioned it. Is this a state or federal law?
Mr. Berger: It’s a federal law that has been adopted
into state law in all fifty states. In fact, North Carolina,
Pennsylvania, South Carolina and Texas prohibit
wage garnishment altogether. It basically says that
employers cannot fire you or penalize you for having
debt problems without facing substantial fines and
criminal charges. It also says that if a creditor obtains
a judgment lien against you, and then a wage
garnishment, it can only take a small percentage of
your net income.
Alan: Isn’t this a bad thing?
Mr. Berger: Think of it like a refinance by default.
Let’s use your example, $45,000 in credit card debt,
with a monthly total credit card debt payment of $850.
And let’s assume you have at least an adequate
annual income that according to certain state and
federal laws, would allow all your creditors to take
only $345 per month in the absolute worst case
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scenario (through a wage garnishment). This is a
typical example of someone’s risk or exposure to
creditors.
Because of the federal statutes and stat laws, the
interest rates they were charging you drop by about
sixty to seventy percent. State law imposes severe
restrictions on the interest rates that can be charged
on judgment liens. Second, comparing the greatest
amount that the first creditor can take against the total
amount you were paying each month to all your
creditors, your monthly payment will probably be
substantially less, usually about 60% less.
Alan: But what if other creditors sue me and get a
wage garnishment?
Mr. Berger: They can sue you and obtain a judgment
lien, but they are prohibited from garnishing your
paycheck because of the Consumer Credit Protection
Act. It prevents second creditors from imposing wage
garnishments provided that the first one is taking the
maximum allowed by law (without objections to
reduce the amount). Remember that because of this
legal limitation, they can only take the same limited
amount no matter how much the debt. In other
words, $5,000 is the same as $50,000 and is the
same as $5,000,000 from your perspective.
Alan: Okay, so I can keep my cash; build corporate
credit and use corporate credit and my cash to
purchase assets, increase my net worth without the
personal liability and at the same time come very
close to eliminating my exposure to creditors.
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Mr. Berger: Like I said, you’ll tell me the answer, very
good Alan.
Alan: Now, there is something you’re not telling me,
am I right?
Mr. Berger: Yes. I wanted you to ask me first.
Alan: Uh huh.
Mr. Berger: You now understand how to look at your
personal debt from what I like to call a “risk
perspective”. This provides you with the most
effective means of “loss mitigation”, the same thing
corporations practice in the usual course of running
their businesses. Think of the first creditor to obtain a
judgment lien against you. You now understand the
risks associated with this lien, and you also
understand how this debt will be used to protect you
from other creditors and personal liability. It works
that way when you have the understanding and let go
of the fear most people have, but it is still a bit sloppy.
Alan: (listening intently)
Mr. Berger: What if you owned that first judgment
lien? What if this is included in your investment
strategy? Compare settling again for 60% of the debt,
and all the liabilities created with that (more taxes,
more liability, less cash, etc.) against purchasing the
judgment lien for its commercial value.
Alan: Wow, interesting. So if I can become my own
creditor, I then control debt that I use to protect myself
from more personal liability.
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Mr. Berger: Right. So what is the commercial value
of a judgment lien against a consumer?
Alan: Not sure, never thought of it. But what if I just
created a “friendly” judgment lien and used that to
obtain the wage garnishment, wouldn’t that block
creditors just as well?
Mr. Berger: Exactly. It is a process I won’t publish
anywhere, but basically I have done this for many
clients and they sometimes call me several years
after the work is done to tell me they were sued and
the case was voluntarily dismissed, or something
similar to this.
Alan: Wow, so this can be a real strategy. And now
I’m thinking a 60% settlement is more like stealing
when I could pay substantially less and maintain the
protections that a judgment lien provides. I wouldn’t
want to pay off a judgment lien, I would want to buy
the first lien at a substantial discount, or create one
myself and keep it in place and use it to protect
myself from other creditors and legally avoid more
taxes.
Mr. Berger: Remember also that if you cannot
purchase or create your own debt like this, you can
find many types of cash flows, or other investments to
make with your cash, at a yield that is favorable to
you, and use that income and equity to offset your
current debt payments (liabilities).
Alan: Of course. I can use my corporation.
Mr. Berger: Maybe, you probably want to use a
corporation in which you can show no legal interest,
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but yet control. But either way, using other people’s
money for the longer period of time is much more
beneficial to you and it’s legal. The lesson here is to
use other people’s money as long as possible, use a
corporation to acquire assets and pay for liabilities.
Use personal debt as leverage to protect yourself
from other creditors.
Alan: Wow, okay Mr. Berger, thanks! I want to know
the first step of how you can help me, what do I do?
And what will you charge me?
Mr. Berger: My single one time fee is far less than
you’d pay anyone else, I mean anyone, and then you
have a few small filing fees to get all the documents in
place. And what I’ll do for you will last a lifetime, even
protecting you against future creditors you don’t even
know about yet, and you’ll be able to pass all of the
benefits along to your children. I think you’ll be
pleasantly surprised, and part of the deal involves
your willingness to participate in the process. And, if
you think there is anyone else I can help, please send
them my way.
Alan: Yes, absolutely. You know, now that I think
back, a great collage gift would have been a
corporation with financials and credit as a graduation
present instead of a car. Maybe I can do this for my
children, after I really learn more that is and put it into
practice for myself.
Mr. Berger: Very well, please stop by Jane’s desk on
the way out and she’ll give you all the details and
scheduling you’ll need. I look forward to working with
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you Alan and please tell Robert I said hello and
appreciate him sending you to me.
Alan: Sure. Thank you so much.
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Get a Fresh Start and be Debt Free for Life
Earlier this year a friend of mine who had just earned
his wings in the United States Air Force was eligible
for another promotion. Upon review, he was informed
that his promotion would be withheld until he could
resolve his overwhelming debt. His payments were
current, but he just had a lot of debt. I asked what
type of debt he had and he explained that aside from
a few small accounts, most of it was student loans he
utilized to further his career.
I suggested he have a meeting with his supervisor
and explain that his debts were obtained legally, that
they were used to further his professional career, that
most of them were guaranteed by the United States,
the same employer they both worked for, and that he
and his supervisor were both employed by the largest
debtor in human history, the United States. I talked
with him a couple of weeks later. He was promptly
given the promotion he earned.
There are many experts that can provide good advice
about asset protection, investing, tax and estate
planning. I am not an expert on these subjects and
they are not included in what we’re going to talk about
here.
What you are about to discover is
the only legal process of its kind
that protects employment income
from creditors and any other civil
liability. It can also protect your
home equity and bank accounts against the same
creditors without transferring any assets. The
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process described also provides you with a means to
increase your net worth without increasing your
personal liability. Upon completion of the six month
process, you will have a corporate structure with a
positive net worth. It will be used to protect your
employment income from creditors and as leverage to
purchase assets on credit without incurring any
personal liability.
But what about my

credit score?
Recently I was doing my typical research and
applying for a mortgage just to test out the process. I
don’t use personal credit so my score is very low; in
fact some lenders want to assign
me a score. My wife’s is similar
but for some unknown reason her
score is significantly higher, even
though we have the same buying
habits, we don’t use credit. To
make my point about the use of credit cards or
personal credit and how people are encouraged to
rely on it, the mortgage broker looked at my credit file
and then my wife’s and suggested that my wife apply
for the mortgage instead since her score was higher.
I asked how that made sense since she had no
employment income or any other source of income
and since I earned all the money for our household.
He actually could not answer me, except to say her
score was higher.
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So this is where we are, because you have good
credit, you’re eligible for more debt. And because you
want to maintain good credit, you at least make your
monthly minimum payments timely. This of course
leads to what, more credit. The cycle continues until
one day the truth of compound interest punches you
in the face. This is not a problem if the debt you incur
is paying you. For example, if the thing you purchased
with the debt is paying you enough money to pay the
debt each month and leave you something extra. For
most people, it’s the opposite. They are paying the
debt with their labor, time, and with a limited source of
income. The more debt they acquire in this example,
the more income they need from an outside source.
This has a ceiling as we all know.
It is so important to understand the difference
between the personal liability you have with your
personal credit file and the absence of liability you
have with a properly organized business. Many of
you have a great credit score, many of you actually
pay money to receive regular reports of your score
and in fact, many of you are actually proud of your
credit score. Your credit score is attached to
everything you own, your identity, even your self
esteem. If you have a problem in one aspect of your
life, it carries over to other aspects just because of the
credit file. For example, your insurance rates might
be higher because of a few late credit card payments
last year. If you are late on a payment for example,
something known as “universal default” allows all of
your creditors to see the late payment and raise your
interest rates. Because of your use and reliance on
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personal credit, you open the door for the entire world
to learn about your financial situation. Your credit file
is easily accessible to merchants, the government
and even private investigators. If you have collection
problems, those can result in the publishing of your
financial situation in the public records. Your personal
credit history is a leash; it is your ball and chain, it is
your parents telling you how you should behave. You
cannot walk away from your personal credit file; it will
follow you for life.
If you are serious about acquiring wealth and
improving the quality of life for your family and
yourself, you must understand the benefits of not
accepting personal liability for your efforts to invest
and improve your financial situation. I am talking
about the difference between personal credit and
business credit. I am talking about the difference
between high school and a college graduate program.
I am talking about wise and intelligent planning and
deliberate effort to increase your net worth and
refusing to accept the personal liability for it. Why
would you stand on train tracks with your eyes closed
just because everyone else appears to be doing the
same? You would not of course and you might be
surprised to discover that those who you think are
standing on the train tracks may actually not. Why
not join this exclusive membership of people who
figured out these secrets for themselves?
It’s time to break the expensive and self-defeating
habit of relying on your personal credit and graduate
to a bigger world of financial statements, business
credit and business thinking. It’s time to dump those
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ideas you just accepted at face value because
someone put a credit card in your mailbox before you
even understood what the abbreviation “FICO” stood
for. It is time to move on to using tools that can truly
serve your best interests in a way that sets you free
from those who would benefit by retaining control over
you.
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I don’t have
any debts, do
I?
Don’t gamble, think again. I am
not advocating the non-payment of
your personal debts, which would
ruin your credit history. I’m saying
that today you know exactly which
debts you have, but you cannot
really factor in that unexpected lawsuit. What I’m
saying that with this new understanding, it would be a
good idea to begin migrating from the use of personal
credit where you’re accepting personal liability for
everything you do, to the use of business credit where
your corporation accepts liability for all of your
worthwhile investments and expenses and borrowing.
I’m trying to tell you that you’re standing on the train
tracks, jump off now.
Let me describe a possible situation. Someone spent
years in college to become a professional in some
vocation. He pays all of his bills, saves and invests
his money for the future. Like most of us he has
customers, business associates, neighbors, friends,
relatives, he drives a car and, he meets new people
on occasion. What if a neighbor decides to sue him
because his dog barks too loud? What if he is sued
by envious associates or even worse, dissatisfied
customers? Most of us might think that would be okay
because we have professional liability insurance and
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home owners insurance and insurance against
unexpected lawsuits? What? You never heard of
insurance against unexpected lawsuits?
Normally, you would defend yourself and depend on
your attorney to do a good job of it and at the least
expense. That way, your insurance carrier would be
happy and maybe agree to continue carrying your
policy, even if the premiums increase a little. So why
would anyone sue anyone else? It’s the principle
right? Please, it’s the money, absolutely. Yeah, okay,
there is a principal somewhere, but it’s really all about
the money they believe that you have and that they
can take. You are insured right? You are a
professional with a business and/or employment
income right? Of course you have money to take,
that’s what everyone understands whether you do or
not.
But what if you already had a judgment lien against
you that this next creditor would have to wait behind,
and wait and wait and wait until you decide he didn’t
have to wait anymore? Would it matter if you won or
lost this unexpected lawsuit? Maybe it would, but
maybe not. If it didn’t matter, how much in attorney
fees do you think you’d have to pay? Would you
need to pay an attorney to defend yourself, to defend
your money, if there was no money to take? What
kind of insurance rates could you get if you were
judgment proof? Have you ever asked what the
premiums would cost to insure something that cannot
be taken or that has no value?
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What would your credit history look like? Let’s say
that everyone’s credit history was available for
everyone else to see, hypothetically. You pay your
bills, never late, have lots of credit, but in order to
make yourself judgment proof and save lots of money
in potential legal fees and insurance premiums, you
have this whopping judgment lien for about a quarter
of a million dollars on your credit file as well. How
would you explain this if asked? It depends who is
asking right? If it’s your close friend who is concerned
about your well-being, you might explain that you
created this lien as a type of insurance plan against
unexpected creditors, to lower your potential
expenses of legal fees and possibly even lower your
liability insurance premiums. You would explain that
the trade-off is a lower personal credit score, but that
you don’t really care because now you are using a
corporation and its credit history to invest your money
and make wise purchases. Would your friend ask who
he could talk with to have this done for him?
What if it’s not a friend who is asking, what if it’s
another creditor? This creditor could easily see that
you are judgment proof, probably with little or no
discussion. Why would he go to the expense of trying
to sue you?
But what about the house you put in your name
before you completed this process? If you sold the
house at this point, with that judgment lien, the title
company would tell you that at the closing, they would
need to pay off that judgment lien and then you could
take the balance if there was any money left. So you
get the money, but it goes to your corporation. The
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only problem with this is that you will lose your
protection and need to replace that judgment lien.
This is only an example of how a liability you do not
yet see can develop into something that is very
expensive and lasts a long time. You should be able
to imagine other variations on this theme.
What about the debts of which you are already
aware? What if you reach a point where you either
cannot pay or decide that there is no economical
benefit for you to continue making payments on your
personal debt? How is the creditor paid, or how does
the creditor recover, assuming we’re talking about a
bank? Let’s continue to examine this in terms of how
creditors make their money.
How do banks make

their money?
You would be very surprised to
discover that the bank made its
money literally at the moment
your account was opened. In
fact, the bank did something
known as originate the money in
your credit account. Yes, the
money came from nowhere, not another account or
another bank; it was originated or created because of
the bank’s license to create money. The other word
for it is counterfeit. A Federal Reserve Note is not a
U.S. Dollar. It doesn’t stop there.
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Let’s assume what I just explained is
not true or that it can never be proven.
The credit account opened for your use
was assigned or transferred into a
group of similar accounts, other
customers with a similar credit score,
and it was “securitized”. Securitize is
the process prescribed by the
Securities and Exchange Commission that allows
companies to create a security and offer it to the
public for purchase as an investment. In this example
of credit card accounts, this investment is known as
“asset backed securities”. Your credit account, or
your labor, is taken as the asset of the bank. It is their
asset and your liability. You can call your broker today
and purchase some, just like stocks and bonds.
So while the credit account or receivable has a
significant value to the bank, even if you never pay a
dime into it, even if you use all the credit money and
never make a payment, its value doesn’t change, or I
should say it changes but is not diminished. You see,
either the creditor’s continued profit is sustained
because you are paying, and because investors are
buying a share of it, or because the bank can convert
the account into a judgment lien and retain the value
of the account just the same. To a bank, a judgment
lien is cash. But this is not the end of how the bank
makes more money from the account.
Because it did not receive your payments, and
obtained a judgment lien, the uncollected balance is
claimed as a deduction against its taxable income.
For investors, this is known as cash flow. In other
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words, the banks are able to create several sources
of cash flow from a credit account that is not receiving
payments. Let me ask you one more question and
just let you think about it for as long as you want.
Since the credit account is an asset, whether because
you pay every month, or investors buy a share in it, or
it becomes a judgment lien or is claimed as a
deduction against taxable income, is it also insured?
My point is that the banks make their money from day
one, don’t be concerned about them. If you borrowed
from your mom, pay her back by all means and she
really did lend you her own money. If you borrowed
from the bank, pay it back if you want, or if you are
able, or only if it suits your needs or personal beliefs.
Remember that the longer you can use someone
else’s money, the greater it will benefit you. If you had
borrowed $20 in 2004, that might have been enough
to fill your gas tank. Two years later, it could fill only
half your tank. How many of you can relate to this?
The price of gas did not really increase, in fact the
value of the gas did not increase, but the value of the
currency declined substantially, so it takes more units
of currency to buy the same quantity as time
continues.
What does this say about the money you put into your
savings account? Every year it’s worth less and less,
even though the same quantity is there. So where
does this “money” go? The question is, “Where does
the value of this money go?” If you worked 40 hours
for $400 and put that in your savings account ten
years ago, each year that amount would have
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depreciated in value by the rate of inflation, and I’m
not talking about the published rate. The real rate of
inflation is about three times what they publish. Its
spending power in ten years would be about $250.
Who or what took the value of your $150, of your 15
hours of labor? Somebody was and is stealing from
you and you never saw it and you can’t do anything
about it. The cause is inflation and the perpetrator is
the banking system, yes; the very same credit
providers that sent you that first credit card in the
mail.
What happens if you

don’t pay?
This is a good question, but I like to ask a different
one instead: What would you do with the next
eighteen credit card payments? This is what many
clients have come to refer to as their Fresh Start Plan.
It takes about eighteen months before any substantial
collection action takes place. In other words,
according to thousands of statistics and over twelve
years of research, this would be the earliest time
before you would be faced with a collection lawsuit.
Most people are concerned about what happens in
the meantime, such as collection calls and letters. A
collection call is nothing different than a telemarketing
call. The caller is trying to make a sale by obtaining a
payment commitment over the phone. It is usually
enough to ask the caller to correspond in writing. If
the calls don’t stop, a simple notification that
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unwanted telephone calls are a crime is enough to get
positive results quickly.
A collection letter is much more beneficial because it
provides useful information about who is demanding
payment. Certain collectors are prepared to sue and
enforce the collection while others are usually bluffing
or trying to intimidate you into making payment
arrangements.
For example, a third party collection notice usually
does not result in a collection lawsuit. A collection
notice on attorney letter-head, but signed by an
employee of a debt collection firm is usually the same,
except that some attorney allowed them to use his
letter-head. A collection notice from the creditor is the
same also. It is fairly easy to understand that only a
collection notice from a local attorney can be
expected to result in a lawsuit within the next ninety
days. And if the attorney is representing a third party
collector, the collection case is easier to defeat than if
he is representing the creditor.
So let me ask you again, while you are
not paying your creditors, are you
saving those monthly payments and/or
investing them through your
corporation? Are you improving your
financial situation while delaying your
creditors? That would be the wisest
use of your money in most cases. What could you do
with the next eighteen payments?
What about when you don’t pay and the police come
to your house to arrest you and put you in debtor’s
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prison? And what about when you don’t pay and they
back a tow truck up to your house and tow it away?
And what about when you don’t pay and they pin a
note to your shirt so your parents read it the next time
you come home? Right, these things don’t happen.
You will only receive phone calls which can be
reduced or eliminated with little effort and you will only
receive more mail, paper in the mail.
In the worst case, you will receive paper that is filed in
court, and even though this paper can result in the
legal taking of your employment income, it won’t do
anything else, except delay your ability to continue
acquiring more personal debt with your credit history.
In the worst case of all, your paycheck can be
garnished, but your bank accounts can be protected
and so can your home. Your paycheck has the
greatest risk. Did you know that the Consumer Credit
Protection Act penalizes employers for taking any
action against employees having collection problems?
Your employment cannot be terminated because you
have collection problems without substantial civil and
even criminal penalties imposed against the
employer.
The following is a description of the limits imposed
against the process of wage garnishments from
judgment creditors such as banks, debt collectors and
private parties. The summary of it is that a person will
pay far less money if he never offers a settlement,
joins a consolidation program or files bankruptcy. The
same is true with each of our programs, both the
Fresh Start and Debt Free for Life.
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Attorneys have an ethical and legal obligation to
explain the facts about what is truly at risk in a
collection process to their clients. I believe
recommending to a client that filing bankruptcy will
best serve his interests is irresponsible and possibly
negligent in most cases. Because I am not an
attorney, it will be easy for many attorneys to try and
discredit my opinion; however, the fact remains, the
numbers speak for themselves. The same is true for
recommending a settlement, when a client is certain
to pay far less money simply by defending the
collection, forcing the plaintiff to meet the burden of
proof and subjecting himself to the possibility of a
wage garnishment.
These garnishment restrictions
are imposed under the Consumer
Credit Protection Act.
The law sets the maximum
amount that may be garnished in any workweek or
pay period, regardless of the number of garnishment
orders received by the employer. For ordinary
garnishments (i.e., those not for support, bankruptcy,
or any state or federal tax), the weekly amount may
not exceed the lesser of two figures: 25 percent of the
employee's disposable earnings, or the amount by
which an employee's disposable earnings are greater
than 30 times the federal minimum wage (currently
$5.15 an hour). For illustration, if the pay period is
weekly and disposable earnings are $154.50 ($5.15 X
30) or less, there can be no garnishment. If
disposable earnings are more than $154.50 but less
than $206.00 ($5.15 X 40), the amount above
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$154.50 can be garnished. A maximum of 25 percent
can be garnished, if disposable income earnings are
$206.00 or more. When pay periods cover more than
one week, multiples of the weekly restrictions must be
used to calculate the maximum amounts that may be
garnished.
Many people will offer a settlement in order to prevent
a wage garnishment. First of all no creditor will talk to
you; they might talk to a settlement company. You
will pay 15% of your total debt for their services. But
then not all creditors will even negotiate with them
either or stop calling you even if you have a
settlement service.
Settlement requires that you pay from your savings or
borrow from friends or family. The result is what you
would imagine, less cash to use toward building your
net worth, owing people that are close to you, and
what most are never informed of is that a settlement
creates a federal income tax liability against the
amount not collected. So if you settle a $10,000 debt
for 50%, or $5,000, your taxable income will increase
by $5,000. This income is known as “imputed
income” and you will receive a Form 1099 at the end
of the year. If you forget to include this in your filing,
you could be audited.
Regarding consolidation, did you know that 98% of all
people enrolled in a consolidation program never
complete it and even owe more money when they
drop out? These should be illegal. Bankruptcy? Let
me just say that there is no such thing. The only
protection you might qualify for is if you have nothing
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to protect. Did you know the banking system lobbied
for years and their attorneys even wrote the actual
language in the legislation that made bankruptcy so
unavailable?
The Fresh Start program is the only method available
that allows you to look at your debt situation in terms
of your ability and willingness to pay, as opposed to
paying a percentage of what the entire world says you
owe. Do the math and you’ll see how keeping your
money makes much better sense.
What is “ D ebt
Free For Life?
It is the leverage you need to protect
your income for a lifetime and
catapult your net worth without more personal debt. I
will bet that you have a telephone and probably even
a computer. I’m sure you have a tooth brush and
more than likely; you use or own a car. You live in
either a house or an apartment. These are all tools we
use to improve the quality of our lives and maintain
our physical health. Do you also own a corporation
and use it to improve and maintain your financial
health? This is the single most important tool of the
rich and did you know that it takes almost no money,
time or expertise to establish and use?
How many of you know exactly what you would do
with twenty million dollars if I handed it to you right
now? How would you respond to a lawsuit against
you for twenty million dollars? Did you know that
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investing through your own corporation and business
credit file eliminates any personal liability as you build
your wealth? Did you know you can have a
corporation for only a few hundred dollars and within
six months, show a positive net worth? Do you
realize that the better personal credit you have; the
more personal debt liability you can accumulate? Did
you know that banks make a profit five different ways
on your credit account, even when no payment is
made? Did you know there is one way to use this
same corporation to block creditors from attaching
your employment income? Did you know that using
personal credit gives the world information about your
financial situation and there is no escaping the
connection between your name and your use of
credit?
Imagine a list of creditors, each of whom intends to
sue you and attach your employment income.
Although your income earned as a resident within
Texas, Pennsylvania, South Carolina and North
Carolina would not be subject to any levy, your bank
accounts and home equity would.
Within your list of creditors, there will be a specific
date, assuming that each wins a lawsuit against you,
when a judgment is awarded in their favor. Assuming
all take the same diligent action to collect, the creditor
which has the earliest date will be able to obtain a
wage garnishment first. This action would preclude
every other creditor from imposing the same wage
garnishment until the first is satisfied or released.
Why? You can thank the Consumer Credit Protection
Act which is adopted into state law in all fifty states
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and also adopted into the rules of civil procedure in
every county in the country. Although we can expect
this law to be in place for a very long time, the
program is designed to continue providing the same
benefits without interruption in the unlikely even that
the law is changed or repealed.
Now imagine if that first creditor gave you ownership
of that first judgment lien and wage garnishment, so
that now all the money being garnished from your
paycheck is paid directly to you. Closer to reality,
what if that first judgment lien creditor is a corporation
over which you have exclusive control but have no
legal ownership interest. This corporation would then
block every other creditor for as long as the collection
process was in place and renewed timely.
Furthermore, this corporation would have a positive
net worth. Although this situation is profoundly
powerful and advantageous to anyone with credit card
or other unsecured debt, it’s only the beginning.
Because of the book value of this corporation, it can
be utilized in creating a new business credit file with
Dunn & Bradstreet. The book value is not necessary
of course, but is very helpful to moving the process
along quickly.
Now imagine using this new credit to purchase an
investment such as a duplex or a stock that pays you
$100 per month. It may not seem like much at first,
but it is money you don’t have to work for because it
comes after you pay other people to work for you and
manage that investment and pay the debt service on
it. Did you ever believe that it’s possible to borrow
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money in order to increase your net worth and cash
flow without working more hours?
What’s more is that since you purchased an asset,
your new business credit looks even better, so you’ll
be encouraged to buy more assets on credit and
again, increase your net worth and cash flow. And
what is even more, you will be doing all of this without
incurring any personal liability.
This segment of the
process involves filing
basic forms that are
already prepared and
published for your use.
Now what about that bank
account that’s in your
name and just waiting for
another judgment creditor to attach? A long
established legal principle explained in a Supreme
Court decision known as United States v. National
Bank of Commerce provides the solution. It’s quite
simple; a creditor is limited to taking property over
which only you have exclusive control. A creditor can
attach your personal property for a personal debt
which you are liable, but cannot attach personal
property if you own or control it with another person
who is not liable to the same extent.
A common example of this is in a bank account. As
the sole signer on a personal account, your money
could be taken by a judgment lien creditor. But as a
signer on an account in which no one signer has
exclusive rights to withdraw the funds, no judgment
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lien creditor could take the money unless it could be
taken from all signers at once. It would be like if you
were the signer on a bank account for your
homeowners association, acting as its treasurer. It’s
not your money, so it cannot be taken to satisfy your
personal debts. Or this is similar to money that might
be available to you through a corporate expense
account to travel, because it’s not your money,
because its money owned by the corporation for
which you are employed, again it cannot be taken for
your personal debts. Our system will enable you to
continue your usual banking practices but under the
protection of this new corporation.
The corporate structure utilized in this program is a
corporate partnership, also known as a limited liability
company. It provides its members with something
called “charging order protection”. This is a technical
term which we defined in the previous example.
Did you know that a judgment lien that is recorded in
the county in which you personally own real estate
can attach to the equity and the judgment lien creditor
can collect upon refinancing or the sale of the
property? In fact, you cannot even transfer the
property out of your name because it might be
construed as fraud and reversed. The Debt Free for
Life Plan creates a situation that holds that first lien
position and in nearly every situation, allows you to
retain all of your equity without transferring title or
selling.
The Uniform Fraudulent Conveyance Act states that if
you transfer property at a loss in order to escape
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creditors, the transfer can be voided and reversed
and then taken by the creditors for violating this
statute. The process undertaken through the Debt
Free for Life Plan creates the opposite situation. Upon
its completion, your financial situation is drastically
improved, no property is transferred and many times
you become solvent just because of the program
benefits.
Now that you have power over your creditors, and a
vehicle to increase your net worth and cash flow, you
can be generous with your creditors and resolve
those unpaid accounts on terms which suit your
personal needs.
Who qualifies?
Anyone with employment
income, property or assets
qualifies. Anyone who uses
personal credit is a good
candidate. Most people that
invest or save money do so
in their personal name, while
at the same time incurring
personal debts for a variety of reasons. Why attach
your savings and investments to your personal debts
this way when they can be easily separated?
If you are using personal credit for purchases now,
and suffer some kind of hardship that you didn’t
expect, such as identity theft, you won’t be protected
against creditors.
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That’s right! This incredible system protects you
against identity theft without silly monthly fees.
On the other hand, if you are accustomed to using
business credit, you will have no personal liability and
this provides you with the continuity you need to get
back on track. If you have unsecured debt that you’re
either current on, or struggling to make payments on,
it doesn’t matter, being prepared for anything is to
your advantage.
The more money in savings and investments you
have, the better prospect you are for this service. The
more unsecured debt an individual has, the more
benefits are available through the program. People
who would seek out or be qualified for a debt
settlement program or consolidation are an excellent
prospect because the costs for these programs are
enormous compared to ours. Because creditors and
collectors know that because bankruptcy is no longer
a feasible option for nearly every consumer who
would consider it, they are much less willing to offer
lower settlements. Furthermore, settlements reached
through settlement firms will cause additional federal
income tax liabilities for imputed income (forgiven
debt).
I like to use this additional example. If you are the
owner of your car, and the owner of your house,
everywhere you drive, your house is driving with you.
Why? Because if you incur a liability because of the
risky practice of driving (that’s why we have
insurance), then anything you own can be attached to
that potential liability. Don’t think that your insurance
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will protect you against lawsuits. What else do you
own that is driving around in your car with you?
This program greatly benefits anyone who is
employed and no more than three months behind on
any eligible credit or collection account (no collection
attempts from an attorney). It is the ideal purpose if
you simply want to use this program as a guarantee
of protection against unknown collection or liabilities.
Many professionals pay for liability insurance, which
simply opens the door for potential lawsuits since
there is money to be taken. Our powerful and time
tested strategies absolutely close the door on all
creditors; in fact it slams the door shut and greatly
discourages anyone from wanting to initiate any
claims against you.
I don’t
believe it.
It is usually the attorneys who
claim that this service must be a
scam. The response is usually
“If it sounds too good to be true,
it probably is.” I believe the
reason for this is because they
cannot sell it, or, don’t understand it, or didn’t think of
it themselves. I have had one CPA say “…it isn’t
legal, but it’s not illegal, it’s grey.” If this makes any
sense at all, the truth is that he did not understand it,
and since he was not qualified to give legal advice,
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could not simply admit that he didn’t know and just
made this ambiguous response.
Please investigate for yourself; investigate me, my
ideas and my business and determine for yourself
whether or not I am operating any type of deceitful or
fraudulent enterprise. Since 1993, my mission has
been to reform the consumer debt service industry so
that consumers have real solutions to their debt
problems and totally understand how to analyze their
situation, truly from a risk perspective. At the same
time, providing everyone, even those without any hint
of a debt problem, the protection they need against
personal liability to their income. This is not asset
protection per se but the only means available that
absolutely protects employment income. Remember
that it is usually this income which allows people to
acquire assets which can then be protected. To
assist in your investigation, you may direct your
written inquiries about the law firm processing the
patent application, the application itself and the law
firm that obtained the trade name registration or any
other inquiries to this organization.
I will be the first to tell you that a patent pending
status does not make something which is already
illegal, into something legal. To understand that the
process is legal, it is important to understand its
principles. First of all, it does not convey property in
any way, it does not make anyone insolvent; in fact, it
assists people in becoming solvent while protecting
their source of income so that they can meet their
personal obligations on terms that fit their needs first.
Our service conforms to the requirements of the
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Uniform Fraudulent Conveyance Act and meets the
criteria of “fair consideration” as defined therein. The
process is not classified under any activities regulated
as a security and there are no tax consequences.
The program enables you to take advantage of using
business credit that does not attach to or create any
personal debts.
In every single example where I have explained these
programs to anyone, professional, attorney, person
without experience in this area, where it was
understood, it was met with overwhelming approval
and appreciation for taking the effort and risk of
making it available. I say “risk” because there are
certain groups of businesses and individuals who
would really appreciate the opportunity to stop us
from helping you. I truly hope you can understand
and realize the utility of this program and use it for
your own personal benefit. Why leave that sole
source of wealth exposed to any civil liability when
this tool is so available?
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John Gliha
John Gliha is the
founder and creator
of the Zero Debt in
90 Days and its
programs and is the
author of Winning
the Collection
Game®, Blowing
the Whistle on
Credit Card Debt
and co-founder of
the Credit
Collections Defense
Network.
Gliha’s professional
career began in
college from a
paper he wrote
based on his theory
that children could learn advanced mathematics at the
elementary level if they were provided with the right
opportunity. His professor challenged him to prove it.
So within a few months he was producing board
games and visiting local elementary schools to test
out his theories. This was not only consistent with his
thesis; it was proven as he watched fourth grade
students solving algebraic equations within one hour
of instruction. Parents and teachers bought his
program faster than he could produce it. After a
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couple of years, he shelved the endeavor to focus on
some of his own personal problems, credit card debt.
This was in the early 1990s, so $20,000 of credit card
debt was substantial, especially since this was more
than his annual income. He worked for IBM for three
years and then Motorola for one before his efforts to
resolve his own debt problems turned into something
unexpected.
After consulting not only with attorneys and settlement
programs, but debt collection managers themselves,
Gliha concluded that making no payments until he
was financially solvent would best serve his interests.
He believed then and still does that serving the
interests of himself first better enables him to meet
obligations he has to others.
At first he was terrified. He received collection notices
in the mail and rude phone calls to try and coerce him
into making payment commitments over the phone.
But he had his own plan and he was following it. He
spent many hours in the law library studying the
federal and state laws regarding the collection
process and more importantly, what most attorneys
never consider advising their clients of, what exactly
is at risk if you don’t pay what or when creditors and
collectors demand.
He discovered that with all of the legal requirements
imposed against the collection process, if they were
simply followed, the perception of overwhelming debt
collection problems could be diminished to a point
where most people would feel comfortable dealing
with them.
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So he did. He took advantage of every legal
requirement imposed against collectors. They had to
respond to him in writing, they had to stop calling him
at home and at work, and all the while, he knew
exactly what he was risking. This was the big secret,
in the worst case collection, his usual credit card
payments would be cut in half if he were sued and
had his paycheck garnished. He didn’t tell the
collectors that he knew this; he simply followed a
process that developed as he received each
correspondence from collectors.
He was never sued for any collection account, and
today he has the use of credit just like before, but
pays his balance every month. This real life discovery
was so empowering that he began sharing his story
with others. At the time, it was not very acceptable to
admit having debt problems. Times have certainly
changed though. Once he explained his story, others
were opened to discussing their own debt problems.
He shared his experience and knowledge freely until
one day he realized that it was about all he was
doing, the phone would not stop ringing (this was a
few years before the Internet was popular).
Using his thesis from college about education, he
believed that he could successfully share his research
with others and help them achieve the same benefits.
So in 1998 he decided to compile all of his research
into one book and call it “Winning the Collection
Game”. Over the years he has substantially expanded
the research to a point where it goes into every detail
about how your attorney could successfully defend
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you against a collection lawsuit (if he or she really
wanted to).
Since 2002 his research into the monopolistic and
unfair collection practices by creditors such as MBNA
has helped thousands of unsuspecting people avoid
the scheme of binding arbitration. The research and
records collected over this three year period are now
being used as evidence against eight creditors in an
anti-trust lawsuit filed in New York.
In 2004 he co-founded the Credit Collections Defense
Network (CCDN) and then abandoned the
arrangement when people began abusing it to make
false promises in the sales process. Instead of
offering settlements, attorneys in this network agreed
to force creditors to produce evidence that would
support their complaints. In many cases, creditors do
not even have a signed agreement or proof of
damages. If everyone knew this, negotiating
settlements as low as 5% or nothing would be
accepted practice.
Today he publishes Zero Debt in 90 Days as
explained at www.johngliha.com and continues to
provide his professional services to those in need.
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How I Made $65,000 of Credit Card

Debt Disappear in 90 Days!

But what about my

How do banks make

What happens if you

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