ADRA ADRA Negotiation & Settlement Strategies

Question 1

What is the typical settlement range (as a percentage of original balance) that debt settlement companies achieve with unsecured creditors?

Accepted Answer

40–60% of the original balance

Answer

90–100% of the original balance

Answer

10–20% of the original balance

Answer

70–80% of the original balance

Question 2

Which negotiation approach involves starting with an extremely low offer to give room for compromise and reach a middle-ground settlement?

Accepted Answer

Anchoring

Answer

BATNA

Answer

Mirroring

Answer

Framing

Question 3

What does BATNA stand for in debt settlement negotiations?

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

Basic Assessment Tool for Negotiating Accounts

Answer

Balanced Approach to Negotiating Arrears

Answer

Bureau-Approved Terms for Negotiating Amounts

Question 4

When negotiating a lump-sum settlement, which client circumstance typically results in the highest creditor discount?

Accepted Answer

Client is insolvent with minimal assets and the account is severely delinquent

Answer

Client has excellent credit and steady income

Answer

Client has recently opened the account

Answer

Client has a co-signer on the account

Question 5

What is a 'pay-for-delete' agreement in debt negotiation?

Accepted Answer

An arrangement where a creditor or collector agrees to remove a negative entry from the credit report in exchange for payment

Answer

A legal contract to permanently cancel the debt

Answer

A settlement where the creditor deletes all future interest charges

Answer

A government program to erase student loan records

Question 6

Before initiating settlement negotiations with a creditor, what critical information should an ADRA agent confirm about the account?

Accepted Answer

That the creditor or collector owns the debt and has authority to settle it

Answer

That the client has already filed for bankruptcy

Answer

That the account has been paid in full

Answer

That the client's credit score is above 700