subject: New Debt Settlement Laws - How The Federal Trade Commission Helps Consumers Pay Back Debt [print this page] Debt settlement is not only a way to improve your debt on short term, but also a good way to make sure that you will have a stabilized situation on long term. You can choose a settlement to cut your debt in half and stop worrying about not being able to pay it. Financial settlement became popular as soon as the recession started because people used it as a good alternative to bankruptcy; this was because the government changed the laws for bankruptcy and made it difficult for people to choose that option. Financial settlement seemed to be the best way to cut most of your debt and pay less.
The government changed the laws when it noticed that the recession was mostly because of the people who used bankruptcy as a way to get rid of debt. However, most people who used bankruptcy were rich people who used it as a way to avoid paying taxes. This harmed the economy a lot. The government came up with the idea to use stimulus money to keep the people from filing for bankruptcy. The money was used to cover for the amount deducted from the people's debt. The deduction is usually bigger than 40-50% and people can make this wonderful change for their future and for their current situation.
Another great thing is the new law that was recently adopted. This law is meant to keep fraud companies from lying to more and more people. The companies cannot take an upfront fee anymore because that was made illegal. With this measure debt settlement has become a more legitimate solution and people can have more trust in this debt relief option. The government hopes that there will be fewer frauds and fewer people will get their money stolen by fake settlement companies. Financial settlement is a good way to get rid of debt especially because now people won't have to worry about choosing a fake company. They can rest assured that the company they choose will have to solve their problem first and only after it does that they will pay the fee. The government managed to create a safe and fast solution for those in debt and people can now be more relaxed about debt.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
New Debt Settlement Laws - How The Federal Trade Commission Helps Consumers Pay Back Debt
By: Chester Fraizer
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