Understanding the Settlement Offer Process

When you’re enrolled in our program, one of the most important milestones you’ll reach is receiving a settlement offer from a creditor. This page is designed to walk you through exactly what a settlement offer is, how it works, and what to expect at each step so you can feel confident and in control when it’s time to make a decision.

What is a Settlement Offer?

• A settlement offer is an agreement where a creditor agrees to accept less than the full balance owed to resolve an account. These offers are typically extended after negotiations and are based on factors like account status, balance, and available funds.

  It’s important to know:

  • Settlement offers are optional—you are always in control of whether to accept or decline

  • No settlement is finalized without your approval

  • Each account is negotiated and settled individually

How the Settlement Process Works?

Here’s a step-by-step breakdown of what happens:

1. Negotiation Begins

Our settlement team works directly with your creditors to negotiate reduced payoff amounts. Timing matters—creditors are often more willing to negotiate once an account has reached a certain stage.

2. A Settlement Offer Is Reached

Once a creditor agrees to a reduced amount, we receive the official terms, including:

• Settlement amount

• Payment type (lump sum or structured payments)

• Deadline to accept and fund the settlement

3. You Are Notified

You’ll be notified that a settlement offer is available for review. This is when you get to decide whether to move forward.

4. You Review & Approve

You’ll review the details of the offer, including how much it will cost and how it impacts your program timeline. If you’re comfortable, you approve the settlement.

If you’re unsure, you can:

• Ask questions

• Request clarification

• Decline the offer and wait for another opportunity

5. Payment Is Made After Approval

Once approved, payment is issued according to the settlement terms. No funds are released without your authorization.

6. Account Is Resolved

After payment clears, the account is considered resolved under the agreed terms. Documentation is provided for your records.

Where Does the Settlement Money Come From?

Settlement payments are made using the funds you’ve been setting aside in your dedicated special purpose account.

Key things to know:

• The account is in your name

• Funds are used only with your approval

• You can view deposits and payments at any time

If there are not enough funds available yet, we may recommend waiting for a future settlement opportunity.

Why You Might See Different Settlement Amounts

Not all settlements look the same. Factors that can influence an offer include:

• Original balance

• Length of delinquency

• Creditor policies

• Available funds

• Willingness of the creditor to negotiate

Because of this, some accounts may settle faster or at lower percentages than others.

The Big Picture

The settlement offer process is designed to give you:

• Transparency

• Control

• A clear path toward resolving your debt

We’re here to guide you, answer questions, and support you every step of the way—but the final decision is always yours.

If you’ve received a settlement offer and want to discuss it, please reach out to  us at 724-861-3401.