Debt Settlement is meant for individuals and companies that for various reasons are not able to file for bankruptcy. It is an out of court workout that requires our office to negotiate with each creditor for a settlement amount. General settlements are between 25%-50% of the original debt.
After the debtor and creditor agree to a settlement, the creditors close the account. Debtors should be aware, that debt settlements have tax implications and should speak to a CPA.