Debt Settlement Laws – How FTC Rules Reduce Debt Settlement Fees For Americans

american debt settlement
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Debt Settlement Laws – How FTC Rules Reduce Debt Settlement Fees For Americans

Bankruptcy, the worst thing to happen as once a person is declared bankrupt he is being criticised everywhere. However, Bankruptcy can be avoided if a person opts for Debt Settlement Process where both the parties settle on a specific amount of debt instead of the debt which consumer is unable to pay. Nevertheless, due to legitimate paper work it is always advisable to hire services of Professional Companies. It is a better way to clear off the unavoidable debt and get back to normal routine life.

Financial settlement is an expensive affair as a separate Professional company is hired to provide the best available settlement results. The Government with its new settlement laws has steeped in the process of Debt Settlement to make it more affordable to the people of America. The Federal Trade Commission rules make sure to maintain legitimate level of the rules also at the same time maintaining the user friendliness for the consumers. The Government founded various free companies that offer services free of cost to the consumers who are not able to afford the expensive Professional fees of the Professional Companies. Such Government founded free companies can easily be found on Internet.

In addition, the prohibition on taking upfront fees from the consumer till the time the debt is settled through a settlement process by the Federal Trade Commission Rules. This rule is beneficial in reducing the number of scams in the settlement process. With a view to reduce bankruptcy rate the Government has also granted special privileges for the Americans who choose to undertake Debt Settlement process rather than Bankruptcy.

One of the said Privileges from Federal Trade Commission comes in the form of Tax Break that also acts as a factor in reducing settlement Fees for Americans. The Government grants huge reliefs in Tax if any customer chooses the option of payment of debt through a settlement Process. Such relief is offered by the Government to encourage more and more people of America to choose for a settlement instead of declaring Bankruptcy.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $ 10k in unsecured debt you will be eligible for debt settlement.

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