subject: Debt Settlement - How Obama's Tax Breaks Help You Settle Unsecured Debts [print this page] If you do not have enough money to settle your debts, there is no need to panic. You can relax and settle your debt without filing for bankruptcy by taking advantage of President Barack Obama's tax breaks that will help you settle these unsecured debts. Due to increasing cases of bankruptcy, the companies and financial institutions providing unsecured loans were facing huge losses.
This had negatively affected the economy of the country. Hence, in order to make things better for both the debtors and creditors of your debts and to improvise on the economic situation, tax breaks were introduced. It is expected that these tax breaks will help people to settle their unsecured debts without filing for bankruptcy and also reduce the losses incurred by creditors. Mr. Obama has infused a lot of money into the economy to provide easy debt settlement for unsecured debts to consumers.
The new rules for a settlement are beneficial for both the lender and the debtor, if the procedure and norms are followed properly. Under the new rules, the creditor can recover from their heavy losses by offering some concession to the debtor and getting tax breaks, if they opt for debt settlement. This will put them in a better situation. It will always be in the interest of the creditor to at least recover a percentage of the unsecured debt rather loosing the whole amount. Also the tax breaks compensates for the amount foregone by the creditor during a settlement.
As far as the debtors are concerned, the unsecured debt relief will be beneficial for them too. Opting for debt settlement is always a better option for the debtor than filing for bankruptcy. The debtor gets an opportunity to reduce a large extent of their debt and even negotiate on monthly installments for the remaining portion. The benefits accruing to both the parties under the new rules have encouraged debt settlement. Once you have decided to take the route of a settlement for clearing your debts, it will be in your interest if you take assistance of a legitimate settlement company.
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.
Debt Settlement - How Obama's Tax Breaks Help You Settle Unsecured Debts
By: pollstump
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