Qualifying for debt settlement
Debt settlement programs are becoming the first stop before bankruptcy. It is a very beneficial program for those who are behind on their debts or in collection. There are just a few qualifications to be met when it comes to the debt settlement program. Consumer seeking relief in this program must have a debt balance of $5,000.00 or more. If one does have a balance that is $5,000.00 or more the balances will be settled to a lower amount. All debts are settled to an extremely lower amount usually by 45 to 75%. Doing this on your own is almost an impossibility because the creditors want the funds up front. This is not a reality for most consumers and the chances that they have that kind of money to spend is probably not good. After these debts are settled the debt settlement company is able to get a low payment on the settled debt s which make it easier for the consumers this is also something that the consumer have tried to accomplished but failed. Debt settlement companies are able to get around the red tape and come to a conclusion for both parties involved. When doing a debt settlement program it usually will stop any type of further lawsuit or judgments that can be brought against you. The creditors do appreciate the efforts of the consumer in paying the debt off. If this is the case debt settlement companies provide legal counsel to ensure a good outcome.
When doing the debt settlement program many debts can be included but there are a few that are prohibited from being settled. If a consumer has been sued for payment and granted a judgment against them in a court of law the judgment will stand. If the consumer has not been sued yet the judge will appreciate the efforts that were made to resolve the debt and chances are the settlement will stand. Any type of child support that has been ordered must still be paid by the direction of that order with no exceptions. The courts see child support as a necessary debt that should be paid unconditionally. Any type of criminal fine that has been ordered due to harm or intent to do harm will not be added into the settlement program. It is a legal binding contract ordered from the courts o the consumer. Debt that have been order to be paid to another individual during a drinking and driving accident or other type of drug related offense must stay binding with the courts and paid as stated.
Debts that can be added range from medical debts, unsecured debts, credit card debts, collections and some loans. The debt settlement program is a good program for those who can no longer keep up but do not want to do bankruptcy. Many people may want to compare debt settlement vs bankruptcy and its often best to do so prior to filing. Bankruptcy is a very final decision as settlement is not. Settlement gives the consumer a way out of debt without completely destroying the finances.
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