Can a creditor challenge a debt settlement?

Yes, a creditor can challenge a debt settlement in South Carolina. In order to do so, they must file a lawsuit against the debtor and present evidence in court that the debtor has not kept up with the payment terms of the debt settlement agreement. The court will decide if the creditor has a valid legal claim and if the debt settlement is binding. When a creditor challenges a debt settlement, they can ask the court to rule that the debt settlement agreement is legally void. If this happens, the debtor would then be liable for the full amount of the debt. The creditor may also request that the debtor be required to pay the full amount of the debt plus late fees and court costs. Debtors should be aware that if the creditor does challenge the debt settlement in court, the court may find in favor of the creditor. It is important to note that the debtor is responsible for the full amount of the debt even if the court rules in their favor. Additionally, debtors should be aware that even if the court rules in their favor, the creditor can still attempt to collect the debt. In order to avoid having a creditor challenge a debt settlement, debtors should ensure that they comply with all of the terms of the settlement agreement. This includes all payments and fees that are required to be paid throughout the course of the agreement.

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Can a creditor challenge a debt settlement?

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