
Originally Posted by
Elhuero
what is actually involved in the process?
You pay the agreed amount, the debt shows on your credit report as paid as agreed, settled for a lesser amount.
will I get a piece of paper saying the debt is PIF?
No. Settling a debt does not clear it from your credit record. It shows that you settled for a lesser amount. They WILL send you a letter stating it is settled. ... and some lenders may require you to pay the full amount before they will give you a loan.
It's still damaging to your credit. But depending on your situation it may be a life saver.
Settling debts, getting back on your feet and paying the rest off later is better for your credit history than bankruptcy.