All of us know that these days, the recession is the main cause due to which a lot of people are facing immense financial problems.
They are at such a stage from where the chances of recovery are almost non-existent.
Low income sources have made them unable to return their payments.
In these conditions, they try to find means and ways through which they can be able to stabilize their financial lives.
Popular debt relief options like debt settlement are very popular these days which are helping people on a great deal.
However, their popularity was at a huge risk when the fraudulent legitimate companies were using their unfair practices to charge the upfront and other charges from their customers.
People who opted for this method were robbed by these companies.
Fraudulent companies used to charge the upfront fees from their customers and used to assure them that their financial experts will get a reduction in the original debt amount from the creditors but after some time, they used to inform their customers that the settlement process has failed dramatically and the creditors are demanding full money.
This is the reason due to which a lot of people changed their views about this process and started opting for bankruptcy because it provides instant relief from all debt tension.
Increase in the bankruptcy ratio can affect the economy of a country on a negative note due to which the government introduced new debt settlement act 2010.
By this act, all the settlement companies were bounded by the law to offer their services before charging their customers any type of charges.
This law stopped the unfair practices of the fraudulent companies.
Moreover, the legitimate companies, who were working according to the laws, started to work in a more passionate way for helping their customers.
Due to these reasons, a person should always use debt settlement option instead of bankruptcy because with new laws, the customers are required to pay only when the settlement process is a successful.
So, due to these attractive features of the settlement process, a person should always consider to use the process of debt settlement.