The majority of the Americans find themselves struggling with overwhelming debts day by day due to the recent economic depression. In their depression, many consumers have selected debt settlement companies which show them up in big advertisements and ultimately ended up in sinking them deeper into debt. In this situation they did not find any remedy than filing a bankruptcy case. That is the only way out to be free of getting harassment calls from the collection agencies.
Bankruptcy neither does any good to consumers, nor to the creditors. It blocks the whole financial future of the victim as well as causes the gradual downfall of the financial establishments. The introduction of new meant to minimize the above cycle growing too far.
In the past, the creditors did not like to have settlement deals with debt relief companies because they wanted the consumers to pay them in full. But recession turned their expectations upside down as the consumers started filing bankruptcies instead. This alarmed the creditors and they understood that they will not be able to recover at least a portion of money that was owed, if they continue their aggressive way. Thus, the new federal debt laws assure that though the consumers pay their debts in half way, their account will be settled as a ‘payment made in full’.
Under the new laws, the protection of the consumer is guaranteed at the beginning of the debt settlement program. The F.T.C. laws prevent the debt relief companies from charging on any service fee at the beginning of the program. This method prevents scams and fraudulent companies entering this business. On the other hand, it provides a chance for all the debtors to try it without entrusting their last few dollars.
Eliminating unsecured debts through a debt settlement program is considered …Read more