What happens to the debt that’s been settled?

In West Virginia, when a debtor agrees to a debt settlement, the debt is partially or completely eliminated. This means that the creditor will accept a lower amount than what is originally owed, and the remainder of the debt will be waived. The creditor is not obligated to continue to pursue the full amount from the debtor. The debt settlement typically requires that the debtor pays the creditor the agreed upon amount in one lump sum or in a series of payments over a period of time. Once the agreed upon payment is made, the creditor is no longer allowed to pursue the full debt from the debtor, as it is considered settled. In some cases, the creditor may report the debt to the credit bureaus as “settled” or “paid in full.” This will still appear on the debtor’s credit report, but it will not have the same negative impact as an unpaid debt. Additionally, the debtor may request that the creditor remove the debt from their credit report by writing a letter to the creditor and explaining their reasons for settling the debt. If the creditor agrees, then they can remove the debt from the credit report.

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What happens to the debt that’s been settled?

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