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Debt Settlements are frequently the outcome of the debt negotiation process. Debt settlements take place between the debtor and creditor when the debtor is unlikely to make payments in full on the money owed.
Creditors are often willing to settle debt obligations if they believe that payment in full may never occur. In this situation, even partial payment of money is beneficial to the creditor. Debt settlements often take place to avoid individual bankruptcy proceedings.
The debtor stands the best chance of coming to a mutually beneficial debt settlement arrangement when the money is owed on unsecured debt such as credit cards. With secured debt such as a home or auto loan, the creditor has the ability to foreclose on the home or repossess the car to secure payment.
Other forms of this term include - debt settlement |
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