What is the difference between debt discharged and debt settlement?

Debt discharge and debt settlement are two distinct processes when it comes to resolving outstanding debts. Debt discharge refers to the complete elimination of debt through a legal procedure, such as bankruptcy. In this case, the debtor is relieved from the responsibility of repaying the debt. On the other hand, debt settlement involves negotiating with creditors to agree upon a reduced amount to be paid, often through a lump sum or installment plan. Debt settlement allows the debtor to pay off the agreed-upon amount, which is generally less than the original debt. While debt discharge provides a fresh start by eradicating the debt entirely, debt settlement helps individuals manage their debts by reaching a mutually beneficial agreement with creditors.