subject: Must Creditors Accept Debt Settlement Letters? [print this page] Author: Jeslyn Jessy Author: Jeslyn Jessy
The American consumers were given so much credit to overspend on housing and consumer goodies before global financial crisis in 2008. Now they are asked to account for their debts. In order to overcome their outstanding issues, one of the methods they can use is through writing debt settlement letters to the creditors. However, it doesn't mean that all the letters sent by the debtors must be accepted by the creditors. There are certain situations where the creditors do not agree with the debtors' proposals to reduce the total debt amount: When someone is unable to make payment for their outstanding for many months, usually more than 6 months, the creditors will sell the debtors' accounts to the debt collection agencies. They do so when they don't get any news from their debtors for long or they fail to get in touch with their debtors. When the debtors refuse to be proactive, it is hard to convince the creditors to accept their requests. In United States, creditors have the right not to assist the debtors to reduce their total debts in whatever situation. It is also not their responsibility to maintain their debtors' credit score. Furthermore, from the business point of view, creditors will not agree to assist the debtors if they find out that the individual debtor's current income is sufficient for him or her to make monthly repayment. In most of the circumstances, creditors reject the settlement letters immediately when the debtors offer too little amount to settle their debt or they request to pay off their debt through installment. To sum up, if the debtors are looking forward to getting approval from the creditors, they are advised to show their sincerity to their creditors. Prove to the creditors that they have prepared sufficient fund in the bank. At the same time, look for supporting documents that can give more weight to the creditors to consider the settlement proposals. About the Author:
