What is debt settlement?
Debt Settlement is when your creditors agree to accept a lump sum payment for less than the actual balance owed. Basically, it means your creditors agreed to take less than what is owed to them. It is accomplished by having our Certified Debt Arbitrators negotiate with your creditors. The IRS as well as some creditors, refers to Debt Settlement as Debt Forgiveness, Settlement in Compromise, or a Negotiated Settlement. Sometimes a creditor may agree to accept a lesser amount and will allow the negotiated settlement to be paid over time, by making monthly payments. This is very rare as most of the time in order to obtain a favorable settlement, it must be paid in full shortly after the agreement has been made. If a creditor does allow monthly payments, it is generally a short time frame, like 3 months or so. On rare occasions, a creditor may allow the balance to be paid over 1 year.
