What is Debt Settlement?
http://www.ConsumerLawQA.com/Debt-Set... What is Debt Settlement? & How Debt Settlement Works. Debt Settlement is a legal process of debt reduction in which the creditor (company whom money is owed) and debtor (person that owes money) agree on a reduced balance that, once settled, will be regarded as payment in full.
When a debtor is unable to make the minimum monthly payments on an unsecured debt such as credit card debt or medical bills, balances continue to grow due to ongoing interest and late fees. In order to stop this cycle of ever-increasing debt, negotiations between the debtor and the creditor can result in a reduced balance that the debtor can realistically pay off with regular payments.
Debt settlements can lower consumers debt balances dramatically and save debtors from the stigma of bankruptcy. The creditor, who risks losing all monies owed if bankruptcy is filed, still regains a large part of the debt.
The right Attorney may handle aggressive debt settlement negotiations with your creditors for you. If creditors harass you or become abusive, Consumer Attorneys may enforce the provisions of the Fair Debt Collection Practices Act (F.D.C.P.A) to ensure your rights.