What is the difference between debt settlement and debt forgiveness?

Debt settlement is a form of partial debt forgiveness. When you settle a debt, your creditor is technically agreeing to FORGIVE a portion of your debt in exchange for you paying a certain amount within a certain time frame. For example, let’s say you owe $5,000 to your creditor and they agree to settle the debt for $2,000 in a single payment due by the 30th day of the current month. As long as you pay them $2,000 by that date, your creditor will forgive the remaining $3,000 of your debt. You will eventually receive a 1099-C “Cancellation of Debt” tax form from your creditor documenting this debt forgiveness, which you will need to file with your tax return.

Resolve recommends SoloSettle

Resolve partners with SoloSuit which provides a debt settlement tool called SoloSettle. If you are being sued for debt, you can use SoloSettle to get it settled quickly.