Several types of debts are simply not suitable for settlement. Government-related debts such as traffic tickets, fines, child support, student loans, IRS debt (taxes), and alimony cannot be settled. Other programs and professionals do often exist for these types of debt.

Some creditors just aren't willing to settle. Payday loans are the most common of this type. These creditors will not reduce the amount owed by one cent. Another debt of this type is a judgmental that is already being successfully garnished. Once a debt is found to be completely unsettle able it should be removed from the service.

Secured debts are also not eligible for settlement. Mortgages, secured loans, and car loans are examples of secured debts which cannot be settled. If the collateral is surrendered or repossesses then the balance remaining is now unsecured and often settle able.

For some debts it is the status of the debt and not the type of debt that determines eligibility for a debt settlement service. If a card has been opened very recently (6 months or less) or if recent large purchases or balance transfers have been made then this debt should not be included into a debt settlement program in most cases. In these cases creditors often determine the enrollment as fraud and can file a lawsuit agains the client.

The most important criteria for enrolling a debt into a debt settlement program has nothing to do with the debts themselves but rather with the client. A good client must have real hardship before he/she enrolls any debts into such a service. Debt settlement is an alternative to bankruptcy. If a client is ineligible then the eligibility of his debts will not matter, and this could lead to problems.

One should assess ones debts and financial situation fully before entering into any debt relief program. One should assess the types of each of their debts and the likelihood that they can be settled. The key criteria one should possess before enrolling into debt settlement is real hardship.