When you settle a debt account, it's vitally imporant to document everything correctly
so there can be no problem or misunderstanding later on. This is a good example
of a confirmation letter received after negotiating a settlement by telephone. With a balance due of $9,431,
the creditor accepted $3,773 to settle the account. This is a 40% settlement and a savings
of $5,658 to the client. Since the client did this entirely on his own, he did not have to pay the
usual fee of $1,415 (based on 15% of the debt) to a professional negotiator. Again, the creditor
was willing to accept this deal because they made a simple business decision to cut their losses.
Even with the new bankruptcy law in force, a creditor still risks losing 100%
of the debt if they refuse
to settle for a reasonable amount and the client ends up in Chapter 7 bankruptcy. And if the client
files a Chapter 13 bankruptcy, the creditor will rarely collect more than 50% anyway (to be paid
over FIVE YEARS). This is why thousands of debt settlements happen daily across the country.
Note: The image file below is a scanned reproduction of a faxed original. The
client's name, address,
and account information have been deleted to protect their privacy. No other alterations have been made
in any way to the originals or the digital images.
