Non Profit Debt Settlement ... also known as "Debt Arbitration" or "Debt Negotiation."
Non Profit Debt Settlement is an alternative to bankruptcy. It's an agreement between the debtor and the creditor as to how the debt will be settled when an individual or an organization cannot honor its original financial contract.
It is a debt relief alternative to bankruptcy that many creditors willingly accept because they will receive a "portion" of what is due them rather than getting no payment at all if the consumer were to file bankruptcy.
Debt Settlement Companies
If you are looking for a debt settlement company to help you with debt settlement, beware! "Non profit" debt settlement doesn't mean you won't pay for the company's services.
There are many unscrupulous debt settlement companies that will charge you exorbitant amounts of money to act on your behalf. Not to mention many of them being complete scams.
Negotiating Debt Settlement for Yourself
Do a lot of research and due diligence if you decide to take the route of using a Non Profit Debt Settlement company. Check them out with the Better Business Bureau, the Attorney General, and your local consumer protection agency.
You may find a reputable company if you shop around but consider using your lawyer to do the negotiating for you. You can also do it yourself which will save you a lot of money.
Basically, you will pay your creditor a lump sum in exchange for a reduction in the total account balance. The most important thing to remember is to get your "paid in full" agreement on paper before you pay any money and do not allow your creditor to have automated withdrawal privileges to your bank account.
Additional Debt Settlement Resources
Don't let the stress and confusion of your temporary financial distress throw you into a panic. Thinking you must use the services of a debt management or debt settlement company could result in making your situation worse.
There are many helpful websites on the internet (like Dave Ramsey's) at www.daveramsey.com where you can find solid information for handling your personal, business, or non profit organization finances.