Debt Settlement
Debt settlement is a negotiated agreement in which a lender accepts less than the full amount owed – sometimes significantly less – to legally settle a debt. It can be a viable alternative to bankruptcy, especially if your debts are held by debt collectors, who often buy up debts for nickels on the dollar etc.
If you have defaulted, the government allows a collection agency to accept a lump-sum payment under three conditions: A) You pay the balance of the loan and interest, but not the collection agency charge; B) You pay the principal plus half the unpaid interest; or C) You pay 90% of the remaining principal and interest.
To find out more, please contact one of our team, email us or fill in our short online form.