subject: Consumer debt relief bailouts - how federal laws can help you get a personal debt bailout [print this page] Consumer debt relief bailouts - how federal laws can help you get a personal debt bailout
Consumer debt relief bailouts are on demand. People want to know how Federal laws can help them to get a personal debt bailout. Good news is that the Federal government has successfully put brakes on bankruptcy filings which as helped both the consumers and the creditors and hence the whole economy has benefited from the same. With new restrictions on bankruptcy, the loss that the creditors were bearing has been reduced and the creditors are no longer in a situation to become bankrupt. On the other hand the consumers can now play safe and avoid the financial troubles which are associated with bankruptcy filing. They can now alternately use other methods of debt relief and yet they can get out of their debts without losing their credit score.
In bankruptcy, the consumers lost their credit scores for 7-10 years and during that period, they failed to get any new loans. This was a serious problem for the consumers. However, bankruptcy did one good thing! The method eliminated the entire debt of the consumers. This is now not the case. The Federal government, with its new policies, has promoted debt settlement which eliminates 50-70% of the debt that the consumers have and the remaining amount is to be paid back to the creditors. However, the consumers do not face a loss of credit score and they can actually get fresh loans once the method of settlement is over. Thus they get personal debt bailouts.
But, how was this made possible by the government? The government came up with modified bankruptcy laws which required the consumers to qualify for bankruptcy if they wanted to file for bankruptcy. This means that the consumers were required to clear means test. The consumers who have an income level greater than the minimum expenditure level (required for a handsome living) defined by the government are no longer allowed to file for bankruptcy. Thus the pace of bankruptcy was reduced. The consumers then shifted to debt settlement as a relief method.
To promote settlement and to ensure that the creditors agreed for debt settlement, the government release billions of dollars into the economy and announced that those creditors who agree to settlement deal will be allowed to use this stimulus cash to cover their costs. The government further announced that the creditors who agree to settlement deals will be given tax breaks as a compensation for the loss of interest income. This motivated the creditors and they easily agreed for settlement and wiped off the debts of the consumers by at least 50% and sometimes up to 70%. This is how the Federal laws are helping the consumers to get personal debt relief bailouts.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
