1.The importance of creditors: Every bank differs in the terms and conditions on which it does debt settlements. While most creditors are cooperative, some of them may be aggressive as far as debt settlements are concerned. These aggressive creditors have higher creditors historical settlements than the rest. Also they may take legal action against you to recover the debt. If unfortunately you have fallen prey to such creditors, the risk of you becoming bankrupt is extremely high.

2.The importance of the length of the debt settlement program: In majority of the debt settlement cases, although legal action is the last alternative, every creditor has the right to sue the debtor if the debt amount is not paid off in the stipulated time period. Creditors usually prefer to settle the matter out of the court because that is more lucrative to them. Therefore, to avoid the court hassles, it is better that you clear off your debts as soon as possible. As a thumb rule, the time taken to eliminate the debt should not be more than three years. However there may be exceptions considered depending upon the total income, the financial state of the debtor, etc.

3.The importance of your current account activity: the way you manage your current finances tells the creditor whether you are genuinely facing problems or just cheating them. Take for instance you just buy a brand new car. This step of yours is going to make the creditor feel deceived and they may reconsider their decision of debt settlement. In the bargain, only you are going to be the loser since the creditor may then resort to legal action.

4.The importance of your credit history: If you have filed Chapter 7 Bankruptcy case in last 7 years, there are very few changes of you getting any considerations again. The more the duration between the last time you filed to the recent, the better is your position for debt negotiation.

5.The importance of your hardship: There are certain situations in life that are beyond our control like losing a job, a divorce, a major accident or a major illness, etc. If such situations lead you to debt settlement program and you can prove the authenticity of the situation, then you may most probably get milder settlement terms from your creditor. Also if the creditor realizes that you cannot afford beyond a certain limit in your destitute condition, even then you may get favorable settlement terms. All you need to remember that even creditors are human beings and they do sympathize if the situation is genuine.