subject: How New Laws Make Debt Settlement a Legitimate Option [print this page] How New Laws Make Debt Settlement a Legitimate Option
Almost every citizen in this country is crashing down due to huge amounts of debt. Previously the only option open to them was to file for bankruptcy to eliminate debt but now with the new changes in the laws of bankruptcy people find it worse than falling into debts. And it is true if you filed for bankruptcy to get rid of your debts you are going to create more problems for yourself. Your credit scores will be lowered down to a great extend and you cannot attain any type of loan in your future for at least ten years. You would have to start over things from the beginning which is not really possible.
Now the other option you can opt for to get rid of your debts is through a settlement program, and now people find it much more appealing than going for bankruptcy. The popularity of debt settlement program has grown rapidly because of the decline in filing for bankruptcy and also because debt settlement program has proven to be a very good method to resolve debts.
Debt settlement program is a method in which the borrower stops making payments to his creditor instead discuss with him that if he reduces some portion of the debt the borrower will be able to pay off his debt easily. The debt can be reduced to approximately 50% and the other 50% would have to be paid by the debtor as full amount owed.
However, debt settlement does affect the credit scores but those effects are less as compare to those of filing for bankruptcy. These scores can be acquired back with some healthy financial tactics and then you can back on your track from where you left.
Even the creditors want to settle debts rather than wanting their clients to go for bankruptcy because it also causes them losses. That is the main reason why amendments have been made in the bankruptcy laws so that people avoid bankruptcy and go for other options.
Debt settlement is not going to stay forever so grab this opportunity before it is too late. Some detractors say that a debt settlement charges very high fees and only reduce debts to up to 25-30%. Well it depends on you if you chose a very good debt settlement company then your debts is going to be reduced greatly but if you chose a company in haste without being concerned that will it be able to provide you legitimate help then of course you are going to suffer.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
