Debt Settlement Proposal

A Debt Settlement Proposal is a written offer from a debtor or their representative to a creditor or debt collector, outlining the terms and conditions under which the debtor is willing to settle and resolve an outstanding debt for less than the full amount owed. The proposal typically includes details about the debt, such as the account number, the original balance, and the current balance, as well as the proposed settlement amount, payment terms, and any other conditions or concessions requested by the debtor. The proposal may also include a brief explanation of the debtor’s financial hardship or other circumstances that justify the settlement offer, as well as any supporting documentation or evidence. The purpose of a Debt Settlement Proposal is to initiate a negotiation process with the creditor, to demonstrate the debtor’s good faith and willingness to resolve the debt, and to seek a mutually acceptable compromise that benefits both parties. The proposal should be carefully crafted and reviewed by the debtor or their representative, and may be revised or countered by the creditor before a final agreement is reached.