Is it true that if you are behind on your credit card payments and some of them have been turned over to 3rd party, that you can actually send them a check along with a novation agrrement which cancels out the original debt and binds them to terms that you yourself set up. Which in turn can be sent to credit bureaus to clear your negative credit
History. Can you give any details of this type of transaction. I am approximately $25,000 in debt and all I receive is social security disability, which I understand is judgement proof.
I would rather find a way other than bankruptcy to clear my debts. I do not have the cash to make the required amounts they want for debt settlement as they want it within 30 days.Thank you.

From what I could locate, this agreement is used by a new debtor corporation after taking over debt from the previous debtor and is not applicable to individuals.

I could be wrong, but, here is the definition I was able to locate from findlaw.com

Novation Agreement
Agreement between a new debtor corporation, an older debtor corporation and a creditor. In this Novation Agreement the new debtor agrees to pay the debts that the old debtor owes to the creditor. In return, the creditor releases the old debtor from any further obligations to it.