Debt Settlement
Debt Settlement is the last option to address overwhelming debt without filing bankruptcy. Also known as debt negotiation, debt settlement is an alternative approach to addressing debt for consumers experiencing the strains of too much debt and considering bankruptcy as an option.
Debt settlement companies will negotiate with the creditors on behalf of the client to settle for a specific amount (in some cases less than the balance owed). In return, the debtor will make one settlement payment or a series of settlement payments for the balance owed depending on each individual program circumstances. Once the debt has been compromised for the agreed upon amount, the creditor will issue a letter to the consumer and report to the credit bureaus that the debt has been "Settled", and/or "Settled for less than full amount."
“Creditors are usually willing to settle the balance of debt owed if the debtor is under a financial hardship. If the debtor chooses to file bankruptcy, then the creditor would receive nothing, therefore, it is their desire to get some payment towards the balance owed.”
Source: Federal Trade Commission, "Facts for Consumers"
Individual results may vary and are based on amount of debt, ability to save funds and successful completion of all program terms. Program does not assume or pay any debts, and does not provide tax or legal advice. Please read and understand all program terms before enrollment. Not available in all states.
