UGotiate keeps track of all of the offers you have sent to your creditors along the way. When you make an offer to a creditor, the amount you offer is marked as reserved for that creditor and not to be used when making offers to other creditors.
Let’s use a simple example to explain further.
For this example, assume you have 2 creditors.
Creditor A has a balance of $3000
Creditor B has a balance of $5500
The total amount in your reserves is $2500.
On June 1st, you make an offer to Creditor A for $1200.
On June 15th you want to make an offer on Creditor B as well. UGotiate advises you that you have $1300 available to offer to Creditor B at this time, even though the total balance in your Contribution Account is still $2500. This is because $1200 is marked as ‘Amount reserved for other offers’ (the amount you’ve offered to Creditor A). The money that is reserved for Creditor A will not be ‘released’ until you indicated in UGotiate that you are no longer pursing a settlement with Creditor A or until the offer is accepted and you pay the creditor.
If you would like to use funds shown in the“Amount reserved for other offers’, you can certainly do so, but UGotiate will warn you about this. If you are using funds reserved for another offer to make an offer to another creditor, you may run into trouble if both of the offers come back accepted because you won’t have enough money to pay both offers. You really only want to make offers with the money you currently have available to be safe.