subject: Debt Relief Methods - How The New Debt Relief Laws Help Small Businesses [print this page] Debt Relief Methods - How The New Debt Relief Laws Help Small Businesses
The economic melt down came hard and didn't spare anyone. Be it the large corporate giants or the small businesses, each and everyone from all the walks of life got badly affected. The financial institutes later on got some stability when the federal government announced bail out package and gave them money to keep in their reserves. The debtors who had huge sum of credit card bills to pay for them going downwards was the only way forward. As they had no jobs because of the downsizing and those debtors who owed small businesses they have had it. Many debtors who own a small business, their order either got cancelled or reduced to half. The raw material they purchase is often on credit and their plan is to pay the creditor once their customer pays back. But in the given scenario the wages of the workers becomes very difficult to pay let alone paying for the credit card debts. As a result many opted to file for bankruptcy because this seemed to be the only way out.
There are other very feasible options that the debtors must always consider before taking any decision. There are Debt Relief firms who offers an array of program to choose from that are designed to deal with a certain situation. In the above scenario the Debt Settlement program is the best option. According to this program the debtor can get to settle the debt without having to pay for the entire debt amount. The debtor can get a wavier of up to 60% on the entire debt amount. Though the debtor gets penalized negative points as the full payment is not made but upon the payment of 12 straight installments. The debtor is awarded points to consolidate the effect to negative scoring.
The debtors no longer have to worry about the upfront fee that many Debt Relief firms charge. According to the new laws the debtor no longer can their clients an upfront fee until the settlement takes place. Therefore the debtor should always consider all the available options. As bankruptcy have serious financial and social repercussions.
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:
