What Happens After a Settlement is Reached?

TABLE OF CONTENTS

• 1. Settlement Approval & Documentation
• 2. Disbursement of Settlement Funds
• 3. Confirmation & Closure
• 4. Program Progress Update
• 5. Preparation for the Next Settlement

Reaching a settlement is a key milestone in your debt relief journey with Debt Consultants Group (DCG). Once a creditor accepts a negotiated offer and you approve the terms, several important steps follow to officially resolve that account and keep your program moving forward.

1. Settlement Approval & Documentation

After our Negotiations Team secures a settlement agreement, the terms are presented to you for review and written approval. These terms include:

• The original balance owed

• The reduced settlement amount

• Payment schedule or deadline

• Any necessary documentation

Your written authorization is required before we proceed. No payments are ever made without your explicit consent.

2. Disbursement of Settlement Funds

Once approved, the agreed-upon funds are released from your third-party escrow account and sent directly to the creditor. Most settlements are paid as lump sums, but if the agreement allows for installment payments, disbursements will be made according to that schedule.

Our team ensures that every payment is timely and aligned with the exact terms of the settlement.

3. Confirmation & Closure

After the creditor receives full payment, DCG will obtain formal documentation verifying the account has been:

• Settled in full (or paid as agreed)

• Closed and no longer subject to collection

• Released of further obligation under the negotiated terms

This may be referred to as a “settlement letter,” “satisfaction of debt,” or “release of liability.”

We store this confirmation in your file, and you are entitled to a copy for your own records. This documentation is essential in case of any future disputes.

4. Program Progress Update

Your client portal is updated to reflect the resolved account. You’ll see your total debt balance decrease, and your program timeline may be adjusted to reflect early or on-time settlements.

Your Case Manager will continue to provide updates and guide you through the next steps.

5. Preparation for the Next Settlement

With one account resolved, your weekly escrow contributions continue building toward the next creditor settlement. The process repeats—review, negotiation, approval, disbursement—until all enrolled debts are fully resolved.

Each successful settlement reduces your financial burden and brings your business closer to long-term stability. DCG manages every step with transparency and precision, ensuring you stay informed and in control.