Can a creditor challenge a debt settlement?

Yes, a creditor can challenge a debt settlement in California. In California, debt settlement is when a person agrees to pay a reduced amount on their debt in full satisfaction of that debt. When a debt settlement is made, the creditor must agree to it in order for the settlement to be valid. If a creditor does not agree to the debt settlement, then it is likely that the creditor will challenge the settlement. Usually, a creditor will challenge a debt settlement in order to try to collect the full amount of the debt. The creditor may also challenge the settlement if they believe the debt settlement is fraudulent. If a creditor challenges a debt settlement, then the debtor will likely have to go to court to prove that the settlement was valid. The court will use the evidence and testimony presented by both parties to decide whether the debt settlement is valid. If the court finds that the debt settlement is valid, then it is likely that the settlement will be upheld and the debtor will not have to pay the full amount of the debt. However, if the court finds that the debt settlement is invalid, then the debtor will likely have to pay the full amount of their debt.

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Can a creditor challenge a debt settlement?

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