For the debtor, debt settlement can sometimes make sense where the debtor does not qualify for a Chapter 7 bankruptcy and under Chapter 13 bankruptcy , the debtor would be required to pay back most of the unsecured debts anyway. The debtor can sometimes reduce his or her debt balances by more than 50%. Whereas, for the creditor, they regain trust that the borrower intends to pay back what he can of the loans and not file bankruptcy (in which case, the creditor risks losing all monies owed).

Posted in: Debt Settlement FAQ