Debt Relief Programs Vs Filing Bankruptcy - How New FTC Laws Favor Debt Settlement


Due to economic recession last year and fear of fraudulent services of settlement companies, many people filed for bankruptcy cases. When government noticed that ratio of people, who are using bankruptcy as their last resort, is too high then, it introduced new laws. In these laws, government tried to prohibit people to file for bankruptcy because it enforces harm to both parties. A person who files petition for bankruptcy will face severe financial crisis in future. He may lose his job. He may not be able to buy a new car or a new house. His credit report will be ruined and he will not regain financial freedom too easily. Companies will not provide loan to him. So these things will make many individuals and families useless members of society. FTC laws are also in favor of creditors because when people will not go for bankruptcy then credit card companies do not have to suffer from total losses.

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Government has made bankruptcy more complex and expensive process. They can not totally terminate this program because of many reasons. But still they can control it by putting more restrictions. Its registration fees have been increased. Its paper work is increased. Responsibility of attorneys is also increased so in response these attorneys have increased their fees. So because of these negatives, this process will not work out in future. On the other hand debt settlement is totally legal and efficient way of getting out of debts. Once you have decided to do this through negotiation then find a legitimate company and that company will take care of the rest. Upfront fees of these companies are terminated. They can not charge you any fees until and unless they provide a solution to your problem through negotiation with your creditor.

These steps have brought a very positive effect on people and it has helped in increasing the customer's status, who were afraid of their services in past. Federal Trade Commission has provided solution to other credit card issues too. A customer can download a copy of Act to understand its benefits.


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