New credit debt settlement laws have made debt settlement programs a much better option than filing bankruptcy. The new federal laws provide much more protection for consumers seeking debt relief. Now if the debt settlement company can't negotiate a successful settlement deal and eliminate your balance by at least 35% you won't have to pay a penny.
Getting out of credit card debt is never easy and unfortunately there were many shady debt relief companies that took advantage of desperate Americans simply looking for help with the credit cards. These companies have prospered since the new bankruptcy laws were passed in 2005 making bankruptcy for less appealing. While many debt settlement companies were legitimate and did things the right way, many more were shady and deceptive. Well, it's safe to say that all those shady businesses have been put out of business with these new laws.
Only the legitimate companies are left. The companies that have a proven track record and are comfortable collecting there fee on the back end when the debt actually settles, will stay stay in business. They know the settlement process does work when done correctly by the right company. In 2009 alone over $1 billion in unsecured debt was settled via debt negotiation companies.
If you are over $10,000 in unsecured debt and are experiencing a legitimate financial hardship then a settlement program might make financial sense especially considering these new laws. Remember they can't successfully negotiate a successful deal and eliminate at least 35% of your unsecured debt then you shouldn't have to pay a single penny.
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