Bankruptcy Secrets
Debt Settlement and Bankruptcy
Debt settlement is a method of wiping out your debts by offering your creditors a lump sum payment that is discounted anywhere from 20-70%. If the creditor fears that you might seriously be considering bankruptcy, they will have little option but to seriously consider any offer you may come up with. They will have to accept whatever they can in lieu of the full amount.
This is one area where the new bankruptcy law may have little effect. Creditors will still fear bankruptcy especially for those individuals with incomes are qualified for Chapter 7 bankruptcy due to a lower income. .
