subject: Debt Settlement Laws - How New Financial Laws Help Debt Settlement [print this page] Debt Settlement Laws - How New Financial Laws Help Debt Settlement
The new laws permit new methods of debt elimination. What the government did was to make sure that people were able to pay their debts and they could make a negotiation with their loan issuers. This is a very important thing for the average person, especially with the recession that worsen the economic conditions of the country. Nowadays, people have more options to settle their debt and get debt relief. Many of these options include being able to recalculate interest rates, getting a consolidation loan, negotiating the interest rates, obtaining a reduction over their debt, managing their debt with the help of an expert and many more.
Bankruptcy is definitely old-fashioned and less people are opting for it. Another thing that contributes greatly to the decreasing popularity bankruptcy is experiencing is the fact that the government worsened the laws for it. Nowadays, few people are still eligible for Chapter 13 and even more few are eligible for the most wanted Chapter 7. Although bankruptcy can eliminate your debt completely it has many disadvantages that may interfere with the well being of your financial situation on long term. Making sure that bankruptcy is not the right option for you has made the government support the debt settlement programs.
Although debt settlement is a term known in the economic world since the 80's, the average person came into contact with it just a few years ago when bankruptcy became to costly for the government. To make sure that people are well informed about other methods of debt elimination too, the government popularized debt settlement.
When going for debt settlement a person has to keep in mind that they have to have unsecured debt. Unsecured debt is the only type of debt that works with debt settlement; another condition would be to have debt over ten thousand dollars, but that's not a difficult thing to gain nowadays.
If you want to go for debt settlement and changed your mind about bankruptcy you should really check out the companies that offer their services. Maybe you are lucky and stumble upon a company which offers free debt advice too. This would be beneficial before you make your final decision.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
