Frequently Asked Questions

Debt settlement is a way to resolve unsecured debt by negotiating with your creditors to accept less than the full amount you owe. Instead of paying each creditor every month, you save in a dedicated account, and we use those funds to negotiate settlements on your behalf. Each time a settlement is reached and you approve it, that debt is resolved.

A consolidation loan replaces your debts with a new loan, but you still repay the full balance. Meridian is not a lender. We negotiate with your creditors to reduce what you owe on each enrolled debt, so no new loan or credit check for a loan is involved.

Debt settlement is designed for people who have been through a financial hardship, such as a job loss, reduced income, medical bills or a divorce, and who are struggling to keep up with unsecured debt. You'll also need to be able to make a steady monthly deposit. If you can comfortably afford your payments today, another option may be better, and we'll tell you so.

Most unsecured debts qualify, including credit cards, store cards, personal loans, medical bills, collection accounts, and payday or online installment loans. Some private student loans and business debts are reviewed case by case. Secured debts like mortgages and car loans, federal student loans, taxes, and child support can't be enrolled.

Our program generally works best for people with at least [$7,500] in eligible unsecured debt. If you owe less, we'll still talk through your options with you.

Our services are not available in every state. We're currently able to help residents of [list of states served]. Because of state law, we are not able to offer our program to North Carolina residents.

No. Your free evaluation does not affect your credit score.

Never. There are no upfront fees, no enrollment fees and no cancellation fees from Meridian. We don't earn a fee until we reach a settlement, you approve it, and a payment is made to that creditor.

Our fee is [XX]% of the debt you enroll, collected in portions as each debt is settled. You'll see the exact amount in writing before you enroll, and it won't increase. The independent account administrator also charges a [$X] setup fee and [$X] per month to maintain your dedicated account.

You can leave the program at any time without a penalty. Any money remaining in your dedicated account is yours and will be returned to you, minus any fees already earned for settlements that were completed. Keep in mind that debts that weren't settled will still be owed and may have grown with interest and fees.

Most programs take [24 to 48] months, depending on how much you owe, your monthly deposit, and how your creditors respond. There's no penalty for paying ahead, and extra deposits can help you finish sooner.

You do. Your account is held in your name at an FDIC insured bank and managed by an independent account administrator. Only you can authorize payments or withdrawals, and you can check your balance anytime in your Client Portal.

Yes. We present every settlement offer to you, and nothing is paid without your approval. You're always in control of your money.

It depends on your deposit amount and your creditors, but many clients see their first settlement within the first [4 to 6] months, once enough has been saved to make a strong offer.

Yes, you can, and some people do. Working with Meridian means experienced negotiators who know how individual creditors and collection agencies operate, handle the back and forth for you, and help you keep a plan in place when things get stressful. We'll gladly explain the pros and cons of each approach during your evaluation.

Your credit score will likely drop during the program, because creditors report missed payments and settled accounts to the credit bureaus. As your enrolled debts are resolved and your balances go down, you can begin rebuilding. We share practical tips to help.

Not always right away. Some creditors and collectors will keep calling, especially early in the program. You have rights under the federal Fair Debt Collection Practices Act, and we'll show you how to handle these calls and what to send our way.

It can happen. If you receive court papers of any kind, contact us immediately so we can review your options, which may include negotiating a settlement before your court date. Never ignore a lawsuit. You may also want to speak with an attorney.

In most states, wages can only be garnished after a creditor files a lawsuit, wins a judgment against you, and gets a court order. Rules vary by state, and some states limit or prohibit garnishment for consumer debts. Staying in touch with us helps us act early if a creditor takes legal action.

They may. Creditors can continue to add interest and fees until a debt is settled, so balances often grow at first. Our goal is to negotiate a settlement for less than you owe, even after those charges.

Possibly. If a creditor forgives $600 or more, it may send you and the IRS a Form 1099-C, and the forgiven amount may count as income. You may not owe tax if you were insolvent when the debt was forgiven. We recommend speaking with a tax professional.

Yes. We never sell your personal information. We only share it with your creditors, your account administrator and the service providers who help us run your program, and only as needed to serve you. See our Privacy Policy for details.

Yes. Meridian Debt Resolution is a member of the Association for Consumer Debt Relief (ACDR) and follows its Code of Conduct. Our team is also trained and certified through the International Association of Professional Debt Arbitrators (IAPDA).

We want to make it right. Email us at contact@meridiandebtresolution.com and our team will work to resolve it. If you're not satisfied with our response, you can file a complaint with the Association for Consumer Debt Relief through its Consumer Complaint Resolution Portal.

Current clients can log in anytime through the Client Portal link at the top of every page.