Free Resources — The Debt Code

The Reference Library for Your Debt Situation

The Debt Code is a guide to understanding what's actually happening with your debt — the stages, the players, and the moves. This page collects the free reference materials: letter templates, a rights card, statute of limitations data, and direct government links. No signup required to use any of it.

The free Debt Map tells you what stage each of your cards is in and which moves apply. No credit check, no account access.

Free Tools

Interactive tools that answer the two questions most people start with.

Go Deeper

When the free resources have taken you as far as they can.

Download

Free PDFs — click to download instantly.

Know Where You Stand

The templates above work better when you know which stage you're in.

The free Debt Map walks you through each card — what stage it's in (current, delinquent, charged-off, in collections), and which moves apply at that stage. Takes about three minutes. No credit check, no account access required.

State-by-State Statute of Limitations

Credit card debt SOL by state. After the SOL expires, collectors lose the right to sue you and win.

Check if your debt is time-barred with our free interactive tool →

For informational purposes only. Laws change — verify current rules in your state before making decisions.

Government Resources

Official sources referenced in the book.

• CFPB Complaint Portal File a complaint against a debt collector, creditor, or credit bureau with the Consumer Financial Protection Bureau.
• FTC Debt Collection Guide Federal Trade Commission's plain-English guide to your rights when dealing with debt collectors.
• AnnualCreditReport.com The only federally mandated free credit report site. Pull all three bureau reports (Equifax, Experian, TransUnion).
• IRS Form 982 Instructions Used to claim the insolvency exclusion when forgiven debt is reported as income on a 1099-C.
• NFCC.org — National Foundation for Credit Counseling Find accredited nonprofit credit counselors for free consultations.

Debt Glossary

Charge-Off

When a creditor writes off your debt as a loss, usually after 180 days of non-payment. The debt doesn't disappear — it gets sold to collectors.

Debt Validation

Your legal right under the FDCPA to demand a collector prove you owe the debt. They must stop collecting until they provide verification.

FDCPA (Fair Debt Collection Practices Act)

Federal law that limits what third-party debt collectors can do. Prohibits harassment, false statements, and unfair practices.

Statute of Limitations (SOL)

The legal time window during which a creditor or collector can sue you for a debt. After it expires, they lose the right to win in court.

Settlement

An agreement to pay less than the full balance to resolve a debt. Typical ranges are wide and overlap — roughly 40–70% with original creditors, 30–60% once a debt buyer or collector holds it, depending on the age and stage of the debt. These are where most settlements land, not floors or ceilings — some come in lower, and some accounts never come down that far.

1099-C

IRS form reporting forgiven debt as income. If a creditor forgives $600+ of debt, they may send this. The insolvency exclusion (Form 982) may apply.

Default Judgment

A court ruling against you because you didn't respond to a lawsuit. Always respond to court papers — even on debt you dispute.

Wage Garnishment

Court-ordered deduction from your paycheck to pay a debt. Requires a judgment first — collectors cannot garnish wages without one.

Debt Buyer

A company that purchases charged-off debt from original creditors, typically for 3 to 7 cents on the dollar. They profit by collecting more than they paid.

Secured Credit Card

A credit card backed by a cash deposit. Used to rebuild credit after debt resolution. The deposit becomes your credit limit.

Credit Builder Loan

A small loan where payments are reported to credit bureaus but funds are held until the loan is paid off. Builds payment history.

Hardship Program

A creditor-offered program that temporarily reduces interest rates, waives fees, or lowers minimum payments for borrowers in financial difficulty.

Insolvency

When your total debts exceed your total assets. Qualifies you to exclude forgiven debt from taxable income using IRS Form 982.

Strategic Non-Payment

The deliberate decision to pause payments on delinquent accounts while assessing options and building a settlement fund. Not negligence — strategy.

Debt Inventory

A complete list of every account, balance, interest rate, payment status, and creditor. The essential first step in any debt resolution plan.

Deep-Dive Articles

Long-form guides on specific creditors, settlement scenarios, and the legal mechanics behind it all.

• DIY Debt Settlement Guide — How to Negotiate With Creditors Yourself The full process from first call to signed letter, written for people doing this on their own.
• Debt Settlement vs. Bankruptcy — Which Is Better for You? When each path makes sense, what they cost, and how they affect your credit and your future.
• What Happens If You Stop Paying Credit Cards? (Month-by-Month Timeline) A realistic look at the 30, 60, 90, 180-day milestones and what triggers each.
• Debt Validation Letter Template — How to Dispute a Debt Legally When to send one, what to include, and what collectors must do (or stop doing) once they receive it.
• 1099-C After Debt Settlement — Do You Owe Taxes on Forgiven Debt? Walks through the insolvency exclusion and IRS Form 982 in plain English.
• Chase Debt Settlement: Does Chase Settle? What Chase typically accepts, when they sell vs. negotiate, and what to expect on the call.
• Capital One Debt Settlement: Will Capital One Settle? How Capital One handles delinquent accounts and the windows where they're most willing to negotiate.
• Discover Debt Settlement: How Discover Handles Unpaid Debt Why Discover behaves differently from other big issuers and what that means for your strategy.
• Citibank Debt Settlement: Does Citi Settle Credit Card Debt? Citi's typical timing, the kind of offers they'll entertain, and where the leverage points are.
• Bank of America Debt Settlement: Does BofA Negotiate? BofA's approach to delinquent cards and the percentages people are actually getting.
• American Express Debt Settlement: Does Amex Settle? Why Amex is among the most aggressive — and where the openings to settle still exist.