subject: Credit Card Debt Bankruptcy - How New Debt Settlement Laws Make Bankruptcy Less Desirable [print this page] Credit Card Debt Bankruptcy - How New Debt Settlement Laws Make Bankruptcy Less Desirable
The new debt relief laws have removed some of the stumbling blocks that would put off many debtors. After the economic melt down the creditors suffered a huge economic blow though they got some stability when the federal government gave them money to keep in the reserves. Still the creditors need liquidity to maintain the balance of inflow and outflow of cash. Thus they relaxed many of their policies for debt settlement in the effort to attract debtors to settle debts instead of choosing to file for bankruptcy. As most of the debtors due to the economic melt down with no jobs and businesses at halt experienced a lot of trouble paying off the credit card debts. Many debtors started considering declaring bankruptcy as this seemed to be the easier and quicker way out. They fail to realize that bankruptcy comes with serious financial and social risks.
The creditor need money and they have relaxed their policies for those debtors who want to settle their debts. In that bid they have floated Debt Relief programs, according to which the debtor can settle debts gracefully. The debtors who have very little cash in hand and they still want to settle their debts for them the Debt Settlement is recommended which is one of the Debt Relief programs. According to this program the debtors can get to settle their debts without having to pay for the entire debt amount. The debtors can get a wavier of up to 60% on the total amount owed to the creditors. Though the debtor suffers a negative entry into the credit history but at the payment of 12 straight installments extra points are awarded by the creditors to consolidate the effect of negative marking.
Therefore the debtors must take advantage of the lenient policies for the creditors. The debtors must negotiate with the creditors via a Debt Relief firm. The debtors no longer have to worry now about the upfront fee that these firms charge because they no longer can. According to the new laws the debtors are liable to pay the firms only when the settlement takes place and they are satisfied with their work.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
