subject: Credit Card Bankruptcy - Legally Settle Bad Credit Debt Without Filing Bankruptcy [print this page] Credit Card Bankruptcy - Legally Settle Bad Credit Debt Without Filing Bankruptcy
Living a debt free life has become the first preference of every citizen in United States. Majority of the people go for credit card bankruptcy in order to get rid of their unsecured liabilities in no time.
Though filing for credit card bankruptcy brings quick reduction in the amount of liabilities but at the same time it affects the financial life of the borrower very badly. In fact it is true to say that due to this, a person gets fiscally unstable for many years. The major setback of insolvency is that it brings bad impression on person's credit report. This makes him unable to take or borrow loans from banks for the next seven to ten years. The process of credit card bankruptcy is also expensive as the legal lawyers charge high amount of fees in return of their services. The option is bad from lenders aspect as well because in this way they are not able to get their money back. The increasing ratio of bankruptcy is pushing the financial structure of economy towards weaker side. Debt settlement is considered as the best way to settle bad credit debt legally, without filing for bankruptcy.
This method was introduced by federal government in order to stop people from filing for credit card bankruptcy. Many professional and certified companies are lending their services to help people out who are caught in the vicious circle of debt. Financial experts of settlement firms negotiate with lenders and convince them to agree on giving discount in the outstanding amount of debtors. Person gets half reduction in amount easily and the left over balance will get adjusted by the mutual willingness of both the lender and the borrower. The process of settlement is reliable as it is not expensive and the professional negotiators charge minimum amount of fees. The fee is charged only when the service are delivered successfully. Although the process of debt settlement brings negative impacts on credit report but this is only for short period of time and once the person pays back all the dues, the negative impact will be washed away.
It is advisable that a person should avoid credit card bankruptcy and adopt settlement process because this is beneficial for both parties.
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.
