Creditors can agree with a debtor to discharge the debtor's debts on payment of a sum less than that owed.

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This is known as a debt settlement or debt negotiation, and it is a legal option for a debtor to repay a debt for less than the full amount owed. Both parties must agree on the terms of the settlement, including the amount to be paid and any other conditions. Once the settlement is complete, the debtor's remaining debt is considered discharged or forgiven.

Creditors Can Agree with a Debtor to Discharge the Debtor's