subject: Credit Card Debt Bankruptcy - How New Debt Relief Laws Help You Avoid Bankruptcy [print this page] Credit Card Debt Bankruptcy - How New Debt Relief Laws Help You Avoid Bankruptcy
Bankruptcy's negative effects on creditors rating and new laws of Debt Relief which are helpful for the consumers are proving a great motive for the people to choose relief options other than bankruptcy. If you are a consumer and confused how new debt relief laws can help you avoid bankruptcy, this article has the answer for you!
Due to many bogus companies in the market, most of the debtors considered Debt Settlement a risky option. The fraud companies used to charge upfront fee for settlement and never even contacted the creditor for negotiation. After FTC formulated new law which banned this upfront payment, consumer's faith has been restored in the process of Debt Settlement. If a company still requests an upfront fee, a heavy fine of $16,000 will be imposed on it.
Government has induced huge amount of cash called "Stimulus Cash" to support the creditors, offering debt relief programs. Government has also given Tax Breaks for the creditors offering debt settlement i.e. they have to pay lesser amount of taxes than the other companies, so creditors are now agreeing for settlement more easily.
Debt settlement procedure has been rationalized and all that the defaulter has to do is, hire a lawful and proficient settlement company and provide it all the financial documents. The settlement company will do all the paper work, find the middle ground and in the end finalize the deal.
These new regulations and modifications in the existing laws have made debt settlement far less risky than it was in the past and can greatly help you to avoid bankruptcy; its stressful legal tests, massive paper work, extensive court proceedings, dreadful credit rating and below par social image.
No body wants to wreck his family's future. When recession is over, economy will be back on track, businesses will start to flourish once again and you may need to get a loan for your company; so don't annihilate the chances of getting loans in the future by filing bankruptcy!
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:
