What happens to the debt that’s been settled?

When a debt settles in Nebraska it means that the creditor and the debtor have agreed on a reduced amount that the debtor will pay to satisfy and resolve the debt. This agreement is typically made in writing and the document will outline what happens to the debt. When the parties to the settlement have agreed on the amount and terms of the settlement, the debtor will usually pay the agreed-upon amount in full in one or several installments. Once the agreed amount has been paid, the creditor will usually agree to forgive the remaining balance of the debt and report the settled debt as being paid in full to the credit bureaus. This will be reflected in the debtors credit report. In some cases, however, the creditors may not agree to fully forgive the remaining balance on the debt. In this case, the debt settlement agreement may state that the creditor agrees to accept an amount that is less than the full amount owed and report the account as being paid. This means that the remaining balance of the debt still exists, but is reported as being paid. Regardless of the type of debt settlement agreement that is reached, the debt is no longer pursued by the creditor. This is the main benefit of settling debt in Nebraska. The debt is no longer owed and the debtor can move forward without the burden of the debt.

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What happens to the debt that’s been settled?

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