Since the economy began its downward spiral in 2007, the debt settlement has become one of the fastest growing industries, offering unsustainable promises are charging high up-front fees to those who could least afford to pay them.
Now, thanks to intervention from the Federal Trade Commission, a new set of regulations are providing some reasonable expectations for consumers looking for a way to get back on top of their finances.
One alternative to debt settlement that millions of people have used for debt relief is bankruptcy. If you have questions about how bankruptcy could work in your situation, connect with an attorney today to learn more. Simply fill out the form below to arrange a free, no-obligation consultation and see if bankruptcy is right for you.
The new rules, which were phased into effect in the fall of 2010, protect consumers against aggressive marketing tactics by debt settlement firms. These include:
While these rules may seem like reasonable expectations for consumers engaging in debt settlement, these rules are being enacted to avoid a situations in debt settlement industry where consumers' money was being taken while making untrue guarantees, but rarely following through on those promises.
Industry analysts predict many companies could end up shutting their doors rather than comply with the new set of federal standards.
While this may seem like a bad deal for individuals in debt, consumers will now have better information to use in making decisions in this important part of their life.
With the new debt settlement laws in place, you could now be better protected in your quest to eliminate the burdens of debt. But which option is right for you? The answer depends on a number of factors in your unique situation.
By connecting with a local bankruptcy attorney, you can compare these options and see if bankruptcy is right for you. Connect with a lawyer near you is easy—simply fill out the case review form below to arrange a free, no-obligation bankruptcy consultation today.