What is debt settlement law?

Debt settlement law is a set of rules that govern how creditors and debtors can resolve unpaid debts. This law exists in many states, including Tennessee, and provides a way for creditors and debtors to come to an agreement that works for both parties. Under debt settlement law, creditors and debtors can negotiate an arrangement to pay off the debt in full or in part, or to set up a payment plan. If a payment plan is agreed upon, the plan must include information about the amount of each payment, the frequency of the payments, and other details as agreed by both parties. Debt settlement law also outlines the rights and obligations of both parties. Creditors are obligated to provide written notice of any changes to the payment plan before imposing late fees or other penalties, and debtors must agree to any changes in writing. Additionally, debtors have the right to dispute the accuracy of any payments or fees applied by creditors. Finally, Tennessee debt settlement law provides procedures for filing a complaint with the Consumer Protection Division of the Tennessee Attorney General’s Office if either party believes the other party has violated the agreement or any state laws or regulations. The Tennessee Consumer Protection Division investigates the complaint, helps resolve the dispute, and may take enforcement action if necessary.

Related FAQs

Should I be wary of any companies offering “instant” debt settlement?
What happens if I can’t afford to settle the debt in full?
What if I can’t pay the full amount of a debt settlement?
Is there any way to expedite the debt settlement process?
Is debt settlement better than bankruptcy?
Can I negotiate multiple debts at once during the settlement process?
Should I use a debt settlement company or negotiate directly with my creditors?
What fees are associated with debt settlement?
What documents do I need to provide during a debt settlement process?
How quickly can I expect to see results from a debt settlement?

What is debt settlement law?

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