Credit Card Debt Bankruptcy - How New Federal Laws Help Consumers Avoid Bankruptcy And Eliminate Credit Card Debt
The new federal debt relief laws have banned debt settlement companies from collecting their fees upfront. They now must actually live up to their promises and settle your debt if they want to be paid. They can't settle your debt, you don't pay.
Online, December 15, 2010 (Newswire.com) - If you are piled up to your neck in credit card debt and feel like bankruptcy is the only way out, think again. New federal laws have made one debt relief option particularly attractive for those that are on the verge of bankruptcy. Here we will explain why debt settlement is now the best way to avoid bankruptcy and eliminate bad credit debt.
Debt settlement programs were once a very risky option for consumers and small businesses. The main reason why it was so risky was that they had to pay non-refundable upfront fees so even if the settlement company wasn't able to settle the debt, they still got to keep their fee. Under this business model it is easy to see how many consumers got ripped off. Shady debt relief companies made a business out of collecting upfront fees and doing nothing else on the consumers behalf. Thanks to these new federal laws however all of the shady companies have been put out of business.
The new federal debt relief laws have banned debt settlement companies from collecting their fees upfront. They now must actually live up to their promises and settle your debt if they want to be paid. The legitimate debt settlement companies that have a proven track record of successful settlement deals are completely fine with this new regulation. They know that the settlement process does work when done the right way. The legitimate companies will ultimately benefit from this legislation as well seeing as how the industry will have a better reputation. All this considered it is clear that debt settlement is one of the best credit card bankruptcy alternatives out there today. Remember, they don't perform, you don't pay.
Debt settlement is seen as a legitimate alternative to filing bankruptcy. If you have over $10,000 in unsecured debt and are experiencing a financial hardship then a debt settlement can make financial sense. Check out the following link for a free consultation from a certified debt relief specialist in your area.
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