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

A deemed satisfaction is a legal term used to describe the settlement of a debt in West Virginia. When a debtor and creditor agree on a debt settlement, the creditor must issue a written statement that the debt has been paid in full and the account is settled. This written statement is called a deemed satisfaction. In West Virginia, a deemed satisfaction generally serves as conclusive evidence that the debt has been paid or settled. This means the creditor cannot pursue the debt or attempt to collect payments from the debtor. The creditor is also prevented from reporting any negative information to the credit bureaus or making any negative comments about the debtor. The purpose of a deemed satisfaction is to protect debtors and ensure creditors are held accountable for any promises that are made to the debtor during the debt settlement process. Generally, the law states that a creditor must provide a debt settlement and deemed satisfaction within thirty (30) days of the settlement being agreed upon. Without a deemed satisfaction, debtors may be vulnerable to creditors violating the settlement agreement or attempting to collect the unpaid debt. Deemed satisfactions serve as a legal document to ensure creditors comply with any debt settlement agreements that are made and protect West Virginia debtors from unfair practices.

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

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