What happens to the debt that’s been settled?

When it comes to debt settlement law in North Carolina, the status of the debt that’s been settled depends on a variety of factors. Generally speaking, the debt is considered fully paid when it has been successfully settled. In other words, the money owed is accounted for and paid in full. The creditor may choose to accept a lesser amount than was originally owed in order to settle the debt. If the debt is settled through bankruptcy proceedings, there are also specific steps that creditors must take when it comes to canceling the debt. Generally, the creditor must file a document with the bankruptcy court that shows that the debt has been discharged. Furthermore, the creditor must provide the debtor with a written statement that lists all the debts that have been discharged and the consequences of such discharge. In some cases, such as with medical bills, the debt may be placed “on hold.” This means that the debt is still valid, but the creditor is not going to pursue collection action during an established period of time (usually two years). In conclusion, the status of a debt that has been successfully settled depends on the specific situation and the terms of the settlement. Generally, the debt is considered paid in full, though the creditor may accept a lesser amount in order to settle the debt. Additionally, if the debt is discharged through bankruptcy, there are specific steps that must be taken by the creditor. In some cases, the debt may be placed “on hold” instead of being discharged.

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What happens to the debt that’s been settled?

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