I’m a Christian and want to know if a creditor will settle a debt for less than what I owe once it is in collections? In most cases a creditor or collection agency is more than happy to take a reduced lump sum settlement. In many cases debt just never gets collected while negative credit remains on the person who owes the debt’s credit report. From this standpoint a creditor is happy just to get something rather than nothing. If you file for a bankruptcy in most cases they won’t collect anything from you. They would rather get something than nothing so they do have an incentive to work with you under that tough attitude.
Know The Statute Of Limitations In Your State Before Paying Off Old Bills
A bill collector only has a certain time period to sue you for non-payment of a debt. The first thing that you need to do is to check the statute of limitations for the particular debt that you are concerned about. If the debt is older than the statute of limitations for collecting a debt in your state, just tell them that they are wasting their time and you do not have to pay them. You need to check with your state to see what the time limits are in your state. Usually after 7 years they cannot collect legally anymore. Any negative marks that are on your credit bureau should be removed. If the debt does not show on your credit report and you are past the statute of limitations, you are home free. Just mention the FTC.
Christian Debt Negotiation Only Works For Some Types Of Debt
Debt negotiation is mostly for unsecured debts such as medical bills, personal loans, bad checks, hospital bills and credit cards. If you stop paying your mortgage or car payment, the creditor will probably foreclose on your home, or repossess your car, whatever the case may be. With unsecured debt, there is nothing to take from you – except maybe cash. If you are interested in more debt negotiation information see GetPreQualified.com’s section on Debt Negotiation.
