Solution for Bankruptcy is Debt Settlement
Debt Settlement more than often than not saves a Consumer from all the hassles he/she has to go when the financial condition deteriorates. This has been the best alternative to Bankruptcy as first of all Customer gets the benefit of repaying way less than what they exactly owe also they are avoiding the Credit History to be totally blemished, the consequences of which are there for many years to witness.
Here comes the alternative-:
Debt Settlement Company's are often successful in negotiating with the Creditors on 45-50% of Debt Elimination. This helps the Consumers as they now have to pay almost half of what they did actually owe. Still there are Creditors who would not settle for lesser amount than what the borrower actually owed. They do have the right of a legal action against the Debtor for the same. Creditors very seldom do it as they know that they would get nothing or way too less if Consumer goes ahead and files for Bankruptcy. Monthly payments which have to be made by the Consumer to get of their Debts through a Debt Settlement program are deposited in a Trust Account. These funds do keep on increasing month by month and once there is sufficient fund in the Account, the Debt Settlement Companies then go ahead and try to negotiate and settle with the Creditors. Consumers can now keep on paying monthly payments chosen by them for the settlement amount, this would also be free from any interest which they would have paid to the Creditors if they would not have chosen this program.
Benefits of Debt Settlement:
1. The first and foremost benefit of Debt Settlement is that the consumer you pay less and save a substantial sum of money. Consumer will be able to satisfy your debt in full while getting a reduction of 40-50 percent of the original. 2. Once the Settlement Company starts resolving the debts then chances of legal action and harassment calls are almost negligible. In addition, debts can be resolved within months instead of years. Consumer can choose the amount and term for payment in a Debt Settlement program.
3. The Debt Settlement Company deals with the creditors, protecting consumers from harassing Debt Collection agencies.
4. Also once the Consumers enter into this program he saves on the amount which he would have paid to the creditors monthly as interest alone.
5. As per his/her affordability Consumer can choose the monthly plan.