Is there a minimum debt amount to qualify for debt settlement?

In Pennsylvania, the answer to the question of whether or not there is a minimum debt amount to qualify for debt settlement depends on the company offering the service. Generally, debt settlement companies in Pennsylvania prefer debts of at least $10,000 for their services, although many will take on smaller debt amounts. Debt settlement companies will usually negotiate on consumer debts such as credit cards, medical bills, and other unsecured debts. In order to be eligible for debt settlement, a debtor needs to demonstrate that they are unable to make regular monthly payments. The debtor must also be able to prove that they are unable to pay off the full amount of their debt. Debtors should be aware that under Pennsylvania law, there are limits on how much debt can be discharged through debt settlement. A debtor can generally only discharge up to the "debt amount limit." This limit may be more or less than the original amount of the debt. In addition, debtors should be aware that if they enter into a debt settlement program in Pennsylvania, their credit report may be adversely affected. Debt settlement can show up on a credit report for up to seven years. It is important for debtors to understand the potential ramifications of entering into a debt settlement program before they do so.

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Is there a minimum debt amount to qualify for debt settlement?

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