Debt Relief Programs Vs Filing Bankruptcy - What Option Is Best For Me
Debt Relief Programs Vs Filing Bankruptcy - What Option Is Best For Me
Issues regarding debts can be resolved through different ways. A debtor can either take benefit of debt relief programs or can file a petition for bankruptcy. He can also go for debt consolidation which can be a rescue option as well. If we compare debt settlement with bankruptcy then settlement is more viable option. In past, credit card companies were reluctant in providing leverage to people but now they are ready to negotiate because it is in their own benefit. Federal Trade Commission has made new laws in order to stop people from ruining their future by filing for bankruptcy cases. This does not only affect customers but, the creditors too. Their whole investment results in a total loss. This situation is handled in new laws.
Through debt settlement process you can eliminate your debts up to 50% and more. You have to negotiate with your creditor for. In this respect, we recommend you to take help of professional people because they deal with such cases on daily basis. This will also save your credit report. You may have some minor issues while taking credit in future but these will be resolved with time. Bankruptcy is a very bad option. It will make your financial position worse. You will lose your job. Your future career will be in a great danger. You will face many problems while applying for any loan in future. It looks a very nice solution to get out of the trouble in first go but you will be stepped in another problem, that is for sure!
Government has also taken steps to make bankruptcy more and more complex, by increasing its fees and paper work. A test is also introduced. This test is used to check whether an applicant is worthy of filing for bankruptcy or not. If his financial position is up to requirements of that test then he can file petition in court otherwise he will not get a chance to even file a petition. Attorneys have also increased their fees because court has put more responsibility on these lawyers. If they provide wrong information then court can take severe action against them. So debt relief through settlement is best possible way. Just find a legal advisor and take assistance regarding your case.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.