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Debt settlement, also known as debt arbitration, is a legal process used to negotiate a settlement of an existing legal debt. If the settlement is with a private creditor, the process is called an "Accord and Satisfaction." If the process is for a tax debt, it is called an "Offer in Compromise." Anybody owing credit card debt has the right to negotiate with creditors, but generally expert advice is necessary to negotiate the best deal. Experts can convince creditors to reduce the debt amount because it would be in the best interest of the creditor to receive some payment from the borrower instead of forcing the borrower into bankruptcy.
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