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

A deemed satisfaction is a legal document which states that all requirements of a debt settlement agreement have been met and thus, the debt has been settled and paid in full. This document is important since it serves as proof that the creditor has been fully paid for the amount due. In Washington, debt settlement laws allow for debt settlement with a reduction in the amount of money owed, or the forgiven amount, as long as the debtor can show that they are unable to fully pay the amount due. Once the terms of debt settlement have been agreed upon by both parties, the creditor must issue a deemed satisfaction in order for the settlement to be considered complete. This document is proof that the creditor has received payment in full and that the debt has been satisfied. It also helps to prevent any future legal action as regards to the debt. To obtain a deemed satisfaction, it is important for the debtor to make sure that all terms and conditions of the debt settlement agreement have been met, and that the creditor has received payment in full.

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

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