Debt Settlement Protection Act - How A Small Business Can Benefit
Debt Settlement Protection Act - How A Small Business Can Benefit
If you are the owner of a small business and you are affected by the recent recession, there are chance that you can get out of your debts now. The debt settlement protection act has made it possible for the individuals and the business units (obviously small and start up) to get hold of the best settlement firms in the industry without any headache of being cheated. Because of the immense increase in the demand for settlement services due to stringent bankruptcy laws, the industry for settlement saw the rise of some fraud companies which started making money by cheating the client (individuals and businesses). These fraud firms were taking help of fake promises to invite and attract the individuals and the business which were in need of settlement services.
Once the business owners or individual consumers approached these firms, the firms took advance money from them in name of covering the expenses which are associated with negotiation process with the creditor. Once the firms had the money in their pocket, they simply turned down the consumers and the business owners after a few months by saying, "Sorry sir, our efforts to eliminate your dues through negotiation failed drastically because the creditors are not ready for settlement." This way, the small businesses and the consumers suffered.
On 27th October 2010, the FTC launched a new law according to which the consumers and the small business owners do not pay the firms unless the dues are settled for less through negotiation. This came as a severe blow for the fraud firms and they were forced to leave the settlement industry. The business units can now actually get hold of the best and legit firms and get their dues reduced by at least 50%. Once the dues are settled, the firms can ask for their service fee. This is how the start up businesses are benefiting!
Debt settlement can make financial sense for consumers and small businesses that are experiencing a financial hardship and have at least $10k in unsecured debt. It is not the only option however.