When does the remainder of my balance get forgiven?

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When a creditor agrees to settle a debt, they are agreeing to accept a percentage of the original balance, in exchange for which they will forgive the remainder of the debt. The creditor will forgive the remaining balance of your debt when the settlement is paid within the time frame provided in the settlement letter. If you are making monthly payments on a settlement, your remaining balance will not be forgiven until you make your final settlement payment.

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