When can I start making payments on my debt settlement?

In West Virginia, debt settlement law provides that before payments on a settled debt can begin, the creditor must first provide you with a written settlement agreement that you must sign. The agreement must explain your rights and responsibilities clearly, including the terms of the settlement. After signing the agreement, you must make the agreed-upon payment to the creditor. Depending on the agreement, the payments could be in one lump sum or in installments over a period of time. If the debt is very large and the payment extended over a period of time, the creditor may require that the first payment is made before the settlement agreement is signed. Some creditors may also require a partial payment before the agreement is signed. This is known as an "up front" agreement. Once the settlement agreement is signed and any up front payments have been made, you are legally obligated to make the payments according to the terms of the agreement until the debt is paid in full. If you fail to make the payments or default on the agreement, the creditor can take legal action against you. Keep in mind that if you make payments on the debt, it may not be considered paid in full. This is especially the case if you have only paid a portion of the debt or have settled for a reduced amount. You should always seek the advice of an attorney when settling your debts.

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