DIY Debt Settlement
You can arrange to settle your debts yourself, using our DIY Debt Settlement process. The steps are quite simple, but it is important to understand that creditors are not simply going to give up on collection activities if they still have options.
If your creditors have reason to believe that they may still collect the full amount of the money you owe them it makes little sense for them to negotiate terms. Once the debt has become virtually uncollectable you will find that creditors are far more likely to negotiate some form of settlement.
The longer the debt remains uncollected the better your chances of getting creditors to agree to a reduction in interest and the face amount of the debt. Older debts get pushed around from collection agency to collection agency and collectors get more and more willing to settle.
After a debt becomes statute barred, 2 years is the basic limitation period in Ontario, creditors have fewer options for collecting. Creditors can’t garnishee wages or accounts without a court order and cannot take you to court after the limitation period has expired to obtain one.
The other situation in which creditors may consider accepting the terms of a settlement is on compassionate grounds where the debtor has become ill or incapacitated and it is obvious that the debt will not be collectible.
Before you attempt to negotiate a DIY debt settlement be sure that the limitation period has expired. Once you are satisfied that you fit either one of the criteria that will allow you to make a debt settlement you can pitch your offer. Ensure that you have the money on hand to make the final settlement payment before you offer to settle.
It is imperative to have an acknowledgement in writing from the creditor that they will accept your offer before any money changes hands. Should you make the payment without first obtaining the acknowledgement you will find yourself re-negotiating on different terms.
For more assistance or to obtain a free sample settlement letter please contact our office at 519-646-2222.