What is a deemed satisfaction and how does that apply to debt settlement?

A deemed satisfaction is a legal term that applies to debt settlement in Nebraska. It refers to an agreement between the debtor and creditor that the debt has been settled and the debtor’s obligation to pay has been discharged. Under Nebraska law, a debt is considered satisfied if the creditor agrees to a settlement that includes the debtor paying less than the full amount owed. This is referred to as a “partial payment”. The creditor must sign and agree to the terms of the settlement in order for the debt to be “deemed satisfied.” This agreement is typically in writing, and the creditor must agree to release the debt from their obligation upon receipt of the less than full amount owed. Once the debt is deemed satisfied, the creditor can no longer collect on the debt and the debtor is relieved of the obligation to pay. This is an important distinction in Nebraska, as it allows debtors to negotiate a better agreement than traditional forms of debt repayment. In addition, once a debt is deemed satisfied, it is no longer subject to any type of collection or reporting on the debtor’s credit report. This can be beneficial to debtors who want to improve their credit score, as unpaid debts can remain on credit reports for up to seven years.

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What is a deemed satisfaction and how does that apply to debt settlement?

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