Settlement Process
Whether a debtor enrolls in a professional debt
settlement program or negotiates settlements directly
with creditors, the process is the same. The debtor
will save up and set aside money to build up a
settlement fund. Once enough funds to make a
reasonable settlement offer accrue, the debtor or
his/her professional debt negotiator will negotiate
with the creditor for a reduced payoff amount,
typically between 50% and 70% of the outstanding
balance.
Once the creditor agrees to a settlement amount,
payment is arranged and the account is considered
settled-in-full (as opposed to paid-in-full).
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