What Is a Settlement Statement?

A settlement agreement refers to a written contract reached between the debtor and the creditors' meeting on debt settlement and avoidance of bankruptcy and settlement. After the settlement process begins, in order to reach a settlement agreement, the debtor must submit a draft settlement agreement to the creditors' meeting for review and discussion. The creditors' meeting voted to pass the settlement agreement, and the decision was approved by the court. After the court's ruling has been approved, an announcement is issued to suspend bankruptcy proceedings. The settlement agreement has legal effect from the date of public funds. Generally, the settlement agreement includes the amount of debt relief for the debtor, the period of debt settlement, the method of settlement, the guarantee for debt settlement, and so on. ^[1]