All Debt settlement in California
All Debt settlement in California
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Debt settlement is a process in which a debtor negotiates with their creditor to settle a debt for less than what is owed. This can be a useful strategy for individuals who are struggling to make their debt payments and want to avoid bankruptcy.
Typically, debt settlement involves working with a debt settlement company or a debt settlement lawyer who will negotiate with the creditor on behalf of the debtor. The debtor makes monthly payments to the settlement company or lawyer, who holds the funds in an account until there is enough money to negotiate a settlement with the creditor.
Once a settlement is reached, the debtor makes a lump sum payment to the creditor, and the debt is considered settled. Debt settlement can have a negative impact on a person’s credit score, and there may be tax implications for settling a debt for less than what is owed. It’s important to carefully consider the pros and cons of debt settlement before pursuing this option.