Debt Settlement Impact Statement

A Debt Settlement Impact Statement is a document that assesses the potential consequences and trade-offs of pursuing debt settlement as a debt relief strategy. The statement typically includes an analysis of the debtor’s current financial situation, including their income, expenses, assets, and liabilities, as well as a projection of the estimated savings, costs, and risks associated with settling their debts. The statement may also consider the impact of debt settlement on the debtor’s credit score, tax liabilities, and future financial goals, as well as any alternative debt relief options that may be available. The purpose of this statement is to provide the debtor with a comprehensive and objective evaluation of the potential outcomes of debt settlement and to help them weigh the pros and cons of this approach.