Posted on: 07th Jan, 2009 07:51 am
What is the most legal binding verbage that should appear on a settlement agreement with creditors?...What is the best, proper, most legal binding verbage that should appear on a settlement agreement with creditors? Have a debt for x amount, setteling it for 50% of that amount, I want the settlement agreement to close the debt. What should the agreement say to make sure this debt is closed, paid off upon paying the agreed upon amount. I don't want the balance to come back and bite me later.
pesick, i think you've already stated the language you need - that the settlement will assure you that the debt is closed once you make the payment and that no further payments will be required.
i suppose the only other language i might request is that they will consider the debt "settled in full."
i suppose the only other language i might request is that they will consider the debt "settled in full."
Hi Pesick
If the creditor agree to settle for 50% of the outstanding debt amount, your credit report will reflect as "settled for less" after you pay off the debt. However, you can always request the creditor to change the status of the listing as "paid as agreed" in your credit report instead of "settled for less".
If the creditor agree to settle for 50% of the outstanding debt amount, your credit report will reflect as "settled for less" after you pay off the debt. However, you can always request the creditor to change the status of the listing as "paid as agreed" in your credit report instead of "settled for less".
