What Kind of Debts Can Be Settled?

A large number of un-secured debts may in fact be settled. An un-secured debt would mean there was no collateral involved in taking out the loan, such as medical bills and credit cards for instance. Some examples of secured debt would include things like auto loans or mortgage loans, which could be used as security collateral.

These are a few typical types of debt that might be settled for less:

Student loans
Personal loans (unsecured)
Department store credit cards
Old service bills (for instance utilities)
Tax debts
Medical and legal bills
High-interest credit cards
Collection agency debt

The settlement terms may vary enormously depending on the debtors individual situation, and the financer is not obligated to entertain debt settlement propositions at all. It's more likely for lenders to accept proposals when they are concerned about the person borrowing filing for bankruptcy, in that circumstance a partial settlement is still often better than what would be received from a bankruptcy settlement.