subject: Personal Debt Solutions - Filing Bankruptcy Vs Professional Debt Settlement [print this page] Earlier, people used to consider bankruptcy as the last option to end their stressful financial situations. But now, with time as new rules and regulations have been laid down by Federal Trade Commission (FTC) more and more people who are not in a position to repay their debts are opting for professional settlement over bankruptcy. If you are looking for a comparative analysis of debt settlement and bankruptcy and looking at an answer to why financial settlement is a better option over bankruptcy, you have reached the right place. Professional settlement is considered a better option for getting a solution to the personal debt problems because of various reasons viz.
There is a social stigma attached to bankruptcy. According to many people it is a troublesome experience both financially and psychologically. It is difficult to step into the shoes of those who actually face bankruptcy.
If a person opts for bankruptcy, it is difficult for him/her to regain credibility to re apply for loan in future.
The process of bankruptcy is time consuming and expensive in comparison to professional debt settlement.
The new FTC laws have banned the settlement companies from charging any upfront fees for debt settlement. Hence, the debtor is not required to anything till the time the debts are settled as promised by these companies. Thus a settlement is a more secure way to end your financial worries related to repayment of debt.
Financial settlement reduces the amount of debt which is not the case with bankruptcy.
Tax breaks given by the government to people who opt for a settlement has come as another prominent advantage of professional settlement over bankruptcy.
The financial settlement industry has been regulated by the new reforms in the law which has weeded out the unwanted fake debt settlement companies. This has come as a great relief to those opting for debt settlement.
Opting for a settlement is beneficial for both debtors and creditors.
Debt settlement has now become the preferred option over bankruptcy as it creates a win - win situation for the debtors, creditors and debt settlement companies.
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. For a free consultation from a debt relief specialist in your area check out the following link:
Personal Debt Solutions - Filing Bankruptcy Vs Professional Debt Settlement
