What type of debts cannot be enrolled into a Debt Settlement Program?
There are very few categories of debt that cannot be enrolled into a debt settlement program. Debts that are classified as secured debts will not qualify. A secured debt is any type of debt that has collateral assigned to the credit card or loan agreement. Secured debts do not qualify for a debt settlement program because the creditor will typically seize the collateral and heavy penalties will be assessed to the consumer pertaining to its recovery. If collateral has been repossessed and its’ assessed value does not meet or exceed the total remaining amount of debt owed, a deficiency balance can be assessed to make up the difference. This deficiency balance does qualify for debt settlement as it is no longer a secured debt. It is best for you to consult a Debt Specialist so they may review your financial situation and advise you as to which debts are considered secured and unsecured. In general, secured debts include auto payments, mortgage payments, student loans, taxes, jewelry accou
