A.W.A.R.E’s Setoff Debt Utility Package FAQs

//A.W.A.R.E’s Setoff Debt Utility Package FAQs

A.W.A.R.E’s Setoff Debt Utility Package FAQs

Since the launch of our Setoff Debt Utility Package, we’ve gotten a lot of questions regarding how the process works . We’ve gotten many people ask good questions about the service so here goes the Q&A…. 


Q: Is this Setoff Debt Utility package a one time thing meaning I can only do 3 Utility Bill’s or Credit Cards one time or can I do it month after month after month?
A: 3 vendors are done for you and if you have more vendors, then you will learn how to do the others with our instructions and DIY documents. 3 is just to start you off as a done for you service. I hope that’s comprehendable. 
If you want to use this process on credit cards you want to close out, then you can do that with this process. If you wanted to leave a credit card account open, we don’t necessarily advise that unless you are an advanced student, are a secure party creditor and know what you are doing so they do not close out your credit card account. 
If you have monthly debts like water, gas, cable, phone, etc… you would utilize this process every time you receive the presentment in the mail. If you do not receive a monthly presentment or statement in the mail or online that you are due, then you do not have to do the setoff process for that month. But if you do receive a statement or presentment, then you continue to do the setoff process.
Our customers who are having success have either: a.) not heard from vendor and account has been accredited for Meaning nothing is due, or B.) account gets accredited and a new monthly presentment is sent out for setting off again 
The results in that vary depending on how frequently you do the setoff process.


Q: If I apply the Setoff Debt Utility package towards a credit card, let’s say Visa, will Visa cancel my Credit Card?
A: Some credit card vendors do not know how to accept this process and to avoid having to go through such hassles on a credit card you use daily for your needs and survival, we do not recommend using the setoff process for that but rather on a credit card account you want to close out.
In addition, using the setoff package on credit cards, whether you want to leave it open or closed, can lower your personal credit score. If you care about having a high credit score, please do NOT use the setoff package on credit cards, closed or open!


Q: What if the utilities are not under my name?
A: That’s fine. However, whomever’s name the debt is in should setoff their debt. We recommend (and it’s best) that everyone handles their own debts.
IF for reasons that the individual who’s name is on the debt canNOT setoff their debts using the setoff process (for reasons of disability, not competent, and the like), then that individual who’s name is on the presentment has to grant the competent party power of attorney to setoff their own debts.
If you are a couple and both of you guys overstand this process and are competent to do this process and live in the same residence, then we suggest who’s ever is named on the presentments (what you know as ‘bills’) is who should setoff the debts. 
Be sure on the form, you fill it out accordingly with whomever is named on the presentments


Q: What if my name is misspelled on my presentment. What do I do?
A: For example, let’s say your name is Johnny Cash but your name appears on the presentment as Johnnie Cashe, you are not obligated to pay that debt.
Instead, call the vendor and tell them that the name on the presentments is not correct and to have them correct it right away before you pay another bill. Ask how long it’ll take for the correction to be made.
If they send you another presentment with your name incorrectly misspelled, then send them a written letter and call them again, with the same request, this time, letting them know that you called on (date) and they have not made the correction. 
Q: Is this the accepted for value (AFV) process? 
A: No, though quite similar, this process is different and the most up to date process to setoff debts such as credit card, wifi, cable, internet, cell phone, and the like. 


Q: What debts CAN be setoff using this process and what debts canNOT be setoff with this process? 
A: Here are debts that CAN be setoff using this process: 
    • Utilities like water, gas, electric, cable, wifi, and the like 


Debts that CAN be setoff are as follows: 

    • Student loans 
    • Car payments 
    • Mortgage
    • Credit card accounts that you wish to leave open and/or closed
    • Student loans 
    • Child support 


The above debts requires one to be a secure party creditor who is fully established before discharging the above debts. 


Have a debt not listed in the above list?

Contact us by email at services@areweallreallyeducated.com and we’ll let you know whether or not the debt you can can be discharged or setoff. 



Q: How many cover letters to the internal revenue service and to the department of treasury do you send out if you have more than 1 vendor? Do you send one cover letter per vendor? In other words, if I have 3 vendors, do I mail the internal revenue service and the dept. of treasury for all those individual vendors? 
A: For every vendor that you have, you must fill out form 1096, 1040, and 1040V and write the amount on line 21 of form 1040. Accompanied with the forms, you also send the cover letter accordingly. 


Q: What does this process entail?
A: Sending a cover letter to the Internal Revenue Service, a cover letter to the Department of Treasury, and a cover letter to the vendors along with sending the Internal Revenue Service form 1040 and 1040 V and sending the Department of Treasury form 1096. In addition, you convert the presentment into a money order. 


To get started on the setoff process, you will need to order form 1096 from the Internal Revenue Service by calling them at 1-800-TAX-FORM. It can take 2-4 weeks or longer to receive form 1096 in the mail. We recommend ordering about 12 forms so you have plenty for future setoffs, or more if you have more vendors to setoff. Be patient. Once you order form 1096 with the IRS, you do not need to follow up with them like the IRS states as sometimes, form 1096 are on back order. Sometimes it can even more than 4 weeks to receive the form but this is all dependent on the IRS and not A.W.A.R.E. 


Q: What is the process for delivery time?
A: 7 to 10 business days, you can receive your finalized package sent to your email from your service manager.
You will be required to proofread your package to ensure everything looks correct before your package gets finalized. 


Q: Why do I have to send IRS forms with every presentment and could I do the setoff process without form 1096?
A: The reason why you are sending the vendors form 1040, 1040V and 1096 is because you are making every presentment a tax issue. 
While one can do the setoff process WITHOUT form 1096 sent to the Department of Treasury, it’s recommended to wait until you received form 1096 in the mail before doing your setoff. 


Q: When completing the tax forms, the name to be placed on the form should be the same as that on the presentment from the vendor? 
A: No, it’s the name that the IRS has a record on you for. In other words, whichever name the IRS addresses you by when they send you mail or when you file taxes is the same name you put on tax forms. Vendors have been known to change our names or misspelling it so that’s not always reliable. If you are not a 14th amendment citizen who files taxes or rarely gets mail sent to you from the IRS, then your name is what’s on your social security card. 


Q: Can you also set off student loans and monthly life insurance policies?
A: A different process is required to setoff student loans which is via the promissory note or a negotiable instrument. But you’ll need to be an SPC to utilize that discharge process, though.
Our Debt Setoff package allows for setting off your monthly life insurance.


Q: If the bills not in my name (they are in the name of someone in my family) or in a business name, can I still set them off?
A: Whomever the debt is named under is the individual who has to setoff the debt. In other words, if the debt is under your mother’s name, your mother has to be the one who has to setoff the debt. Her son can’t do it on her behalf UNLESS the mother grants her son Power of Attorney to do so. 


Q: Do I have to be a Secure Party Creditor to do this process? 
A: No, that’s one of the benefits about this package. You don’t have to be a secure party creditor to follow this process which allows a good opportunity for you to get your feet “wet” at setting off debts.  


Q: If a presentment is in a business name and the utility bills are in my husbands name, can I discharge them? In other words do the bills have to be in my name in order for me to discharge them?
A: Since the cell phone debt is technically yours too because your name is on it, you can set it off and so can your husband, but just either one of you can setoff the debt; doesn’t have to be both.
In a different case where the debt is only in your husband’s name, only your husband can setoff that debt because whomever’s name the debt is listed/sent to is who can discharge it. Best that everyone handles their own affairs to remain in honor at all times.


Q: Do I need to fill out forms 1040, 1040V and 1096 Q: If the debts are in my mother’s name, I her child, cannot set it off?
A: If the debts are in your mother’s name, her child cannot set it off; the mother has to do it. And he doesn’t have to be an SPC to do the Debt Setoff package either. 
If he wants to discharge other debts like student loans, mortgage, etc… then he’d have to be an SPC to discharge those types of debts because the promissory note is used for that. Standing is important. 


Q: After I order, what are the next steps? 
A: You’ll be required to fill out our order form after checkout. 
If you checked out on our website: 
  • You’ll receive a “thank you” email from us which contains a link with the order forms. Click on that link and click on the Utilities Order Form and fill it out. You MUST fill out the order form in order for your order to process. This means, the 7 to 10 business days starts after you fill out your order form. So if you ordered on April 1st and you fill out the form on the 5th of April, your order has begun to process and count count 7 to 10 business days after the 5th of April for your order to be completed. 
  • You’ll be assigned one of our top, dedicated Service Managers there to guide and support you along the process. 
  •  Your Service Manager is going to be sending you freebies so while you wait the 7 to 10 business days, you can read up on the materials emailed to you. 
  • The cover letters and forms are done for you, you file. It can take 7 to 10 business days from the day you fill out your form to process and complete your order.  IF BY ANY CHANCE after the 10th business day you have not received your completed package, then you can email your service manager for an update AFTER the 10th business day. We deliver on time so there shouldn’t be a need for that follow up.  


Q: Do I have to be a Secure Party Creditor to do this process? 
A: No, that’s one of the benefits about this package. You do not need to be an SPC to begin this setoff process and offers a great opportunity for those looking to get their feet wet and setoff debts. 


Q: What type of debts does the utility package allow me to setoff? 
A: The package allows you to setoff: 
    • Monthly utilities such as wifi/internet, cable, water, gas, phone, 
    • Car and Life insurance presentments 
    • Hospital presentments 
    • IRS statements 
    • Traffic tickets 
    • Credit card debts (close out)

It’s important to keep in mind that this process works to SETOFF debts. If you wish to DISCHARGE debts, the use of a negotiable instrument would be effective. But you’d need to be a Secure Party Creditor. If you have any questions, please email us at info@areweallreallyeducated.com OR if you wish to speak to someone over the phone about this process, we encourage you to book a consultation via the link here.

It’s important to keep in mind, in order for this package to work and for you to overstand the process, we strongly recommend you read article 3 of the U.C.C here as it’s very imperative to having a full overstanding on how to offset your debts and what to do if the vendors act in dishonor.

We’ll be adding more questions and answers to this FAQ. In the meantime, if you have a question that is not asked above, email us at info@areweallreallyeducated.com

By |2020-01-14T19:09:54-05:00August 8th, 2019|Blog|4 Comments

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  1. Dolphus A Harris January 5, 2020 at 11:54 am - Reply

    what about monthly rent?

    • A.W.A.R.E January 17, 2020 at 12:24 pm - Reply

      Greetings, Dolphus,

      The setoff debt utility pkg cannot be used on monthly rent if it’s from a private landlord. It’s best to steer away from doing it on rent.

      Thank you.

  2. Karen January 29, 2020 at 7:14 pm - Reply

    Is there a cost?

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