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Debt Settlement
Debt Settlement is an option for those considering extreme financial situations such as bankruptcy. Quite simply, the debtor (that’s the formal name for the person who owes money) offers the creditor (that’s the formal name for people or businesses who are owed money) a final settlement amount in lieu of losing most if not all of their money if the debtor is forced to file for bankruptcy.If the creditor is in agreement, the debtor makes a lump sum payment and the rest of the debt is written off. Some debt management, consolidation or settlement companies will work on behalf of the debtor with the creditor to come to a reasonable agreement. Of course, it is in companies’ favour to accept some money over no money and it is often just a matter of agreeing the amount. However, the individual companies owed the money have no obligation to make that agreement. When considering Debt Settlement, it is important that you use a qualified professional debt specialist with excellent negotiating skills. Many debtors try to do this for themselves and although some with lower debts may be successful, a professional is likely to achieve a greater certainty of success. Whether or not the creditors accept this offer is not within your control, you can only provide your information and let them make the decision.
Debt Settlement is preferred to the lengthy and complex legal situation of a bankruptcy. Obviously it is only a solution for those who can afford to make lump sum payments and is not the right choice for everyone. It is not a good idea to borrow money so that you can make a lump sum payment, this is effectively robbing Peter to pay Paul. It is also an extreme option that is going to affect your credit status adversely, but it is still preferable to bankruptcy (practically every option is more beneficial than bankruptcy).
If you would like to discuss your options, why not email info@123debtsolutions.co.uk or call 0808 22 22 123 right now!