Credit Card Debt Bankruptcy - How To Legally Avoid Filling Bankruptcy And Settle Bad Credit Debt
Coming off one of the worst recessions since the Great Depression there are more consumers on the brink of bankruptcy than ever before. Before filing bankruptcy however it is wise to look into your debt relief options.
Online, November 30, 2010 (Newswire.com) - Credit card debt bankruptcy has become a real problem for American consumers. Coming off one of the worst recessions since the Great Depression there are more consumers on the brink of bankruptcy than ever before. Before filing bankruptcy however it is wise to look into your debt relief options . Thanks to new federal laws, one of the options in debt settlement has become particularly attractive.
Debt settlement used to be a very risky option for debt relief however new federal laws have made this option clearly the best alternative to filing bankruptcy. The new laws prohibit debt settlement companies from collecting their fees upfront. They now must negotiate a successful deal and eliminate your unsecured debt by at least 35% in order to collect a fee. Therefore, consumers and small business that opt to use a debt settlement program will not have to pay unless their debts are successfully settled.
If you are piled up to your neck in credit card bills, bankruptcy might seem like the only way out. Bankruptcy should always be the very last option. Your credit rating will be ruined for at least 7 years and you will not be able to get any financing or new credit lines. While a debt settlement will negatively affect your credit rating, it is much less severe than filing for bankruptcy.
Only consumers that have at least $10,000 and that are experiencing a legitimate financial hardship will be eligible for most settlement programs. Thanks to the new federal laws there is much less risk for the consumer. If they don't perform you don't pay a penny.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
Check out the following link to get a free debt relief consultation from a certified debt relief specialist:
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Tags: bankruptcy, credit card debt bankruptcy, credit card debt relief, debt relief, debt relief companies, debt relief laws, debt settlement options
