Creditor Negotiation

This may be either under the hardship provision, just discussed or just negotiating the terms of the loan with the creditor.

Typically, negotiation will result in a payment deferral or a reduction in the repayment for a limited time with a review in six months.

It is also possible to negotiate the forgiveness or reduction of late payment fees and other penalties.

Most creditors are willing to work with financial mentors to reach an agreement so that the debt is repaid, and the client is not put into insolvency.

If your client receives a lump sum payment it may be possible to negotiate a ‘full and final settlement’ of a debt or debts that is less than the value of the debt or debts.