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Do creditors settle for less than what I owe?

Chris Boss explains debt settlement and how much creditors typically settle debt for. In most cases, creditors are willing to settle for less but it depends on the creditor.

Transcript

A really common question is: do creditors take less than what they are owed? And the answer is almost always YES.

It's a question of how much, whether it's 10% or 15%, or 70%.

But creditors often don't like to take a small percent and stretch it out over time.

But what they will do is take 30% and take it in a lump sum or over some period of a couple of payments - two or three. Not over three years, but maybe two or three installments.

So, when people ask, can I make a fractional payment? The answer is most often Yes.

It depends on the creditor, which creditor specifically, but most creditors will settle for some amount less than 100%.

If you have questions about debt relief and bankruptcy, call Boss Law today.