Personal Bankruptcy – Avoid Filling Bankruptcy and Find Legitimate Debt Settlement Programs

There was a time when contacting your lender and requesting a waiver was considered as bad as opting for bankruptcy. It was considered one’s moral responsibility to repay all the debts in full. However, it must be admitted that the credit card issuers contributed a lot to the development of this thought process and mindset. They stood to gain the maximum when people tried to repay all their expensive debts in full without seeking any discounts.

However, the recent economic recession and the collapse that preceded the recession have changed things. The individuals discovered that their monthly payment exceeded their monthly income. This meant that even if they spent each and every cent that they earned towards repayment of debt, they would still have to default on the same.

Of course, this would give them with no money for their essential expenses. This led to hundreds and thousands of bankruptcy in a span of a few months. This was enough to shake the economy. That is when lenders came out with the option of debt waivers and debt negotiations.

All one had to do was get in touch with lenders and explain the problems. If the individual pointed out that bankruptcy seemed like the only feasible option, it was enough to set warning bells ringing amongst lenders. Such a statement was enough for lenders to go for a waiver ranging from forty to seventy percent of the original amount owed.

There are many persons who were of the opinion that settlement is as bad as bankruptcy, if not worse. The latest amendment in the bankruptcy laws has made it very difficult to opt for the same in a very short period of time. The minimum credit counseling duration of six months is enough to destroy your financial condition beyond repair.

On the other hand, settlement enables lenders to recover at least are a part of the amount owed. Further, this option is a great chance for the individual to repair his or her personal finances as early as possible.

So where is the catch? The problem lies not with debt settlement but with the fact that there are a large number of fraudulent settlement companies in the market. They will keep you guessing for months and months before informing you that the settlement has failed.

All this after you were given to understand that the settlement agreement had been signed and finalized. Just protect yourself from such companies and you shall be safe and secure from all risks.

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