What happens to the debt that’s been settled?

When it comes to debt settlement law in Delaware, once debt has been settled, it mostly depends on the agreement between the creditor (the party owed money) and the debtor (the party responsible for paying). Generally speaking, when a debt is settled, a lump-sum payment is made to the creditor in exchange for the creditor forgiving the remaining debt. The lump-sum payment is usually much lower than the full amount owed. Once this payment is made, the debt is considered to be cleared, and the debtor no longer needs to worry about it. In most cases, the creditor will inform the relevant credit bureaus that the debt has been settled and that it is no longer outstanding. This means that the debtor’s credit report will be updated to reflect that the debt has been settled. However, in some cases, it is possible that the debt might still be reported as ‘unpaid’ on the debtor’s credit report. This will depend on the agreement between the creditor and the debtor. It is important to be aware of this, as it can affect the debtor’s credit score. In some cases, the creditor may even take legal action against the debtor for unpaid debts. It is important for the debtor to be aware of all the details of the agreement and the potential legal consequences of not fulfilling the agreement.

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What happens to the debt that’s been settled?

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