Debt Relief Programs - How New Bankruptcy Laws Made Debt Settlement A Rapidly Growing Industry

Online, April 26, 2010 (Newswire.com) - Debt settlement has been around for around 10 years however it has never gained so much popularity and controversy than it has the last couple years. The recent changes in the bankruptcy laws made it more difficult for debt ridden consumers to qualify for debt relief. When millions of consumers could no longer qualify for bankruptcy many of them decided to go the debt settlement route. This rapid growth in debt settlement programs unfortunately led to several unethical companies entering the market taking advantage of debt ridden consumers. A recent push from congress to clean up the industry has resulted in several debt settlement companies being shut down.

The Association of Settlement Companies (TASC), widely recognized as the debt settlement industry's regulatory body, claims they are all for increased regulation standards. Increased regulation will push the unethical companies out of the market and give a better image to the debt settlement industry as a whole. There are plenty of legitimate debt settlement services that have helped debt ridden consumers eliminate their unsecured debts through a negotiation process. In fact, in 2009 alone the debt settlement industry settled over $1 billion in unsecured debt which resulted in eliminating $600 million of consumer debt. Creditors also received $400 million in collected debts from debt settlement so it is difficult to argue that debt settlement is not a legitimate industry.

The debt settlement companies that created such a bad name for the debt settlement industry were taking large upfront fees and generally ignoring all the ethical standards set in place by TASC. By doing business with a debt settlement company that is not a member of TASC, the consumer is taking an inherent risk that they will be taken advantage of. Thus the easiest way to find legitimate debt settlement companies is to ensure they are an accredited member of TASC.

Debt settlement is a legitimate alternative to bankruptcy but not all consumers will be eligible for it. In order to qualify the consumer must be at least $10k in unsecured debt and also be able to prove a legitimate financial hardship such as a loss of job or medical issue. There are free debt relief networks that help consumers locate TASC certified debt settlement companies as well as provide a free consultation to go over all available debt relief options. If a consumer is going through a financial hardship and understands the risks associated with debt settlement, then it can be a viable way to eliminate unsecured debt and clearly is a better alternative to filing bankruptcy.

To locate legitimate debt settlement companies through a free debt relief network check out the following link:

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