For people who cannot pay back their unpaid amounts there are two choices. They can get either a debt settlement or bankruptcy. Previously it was easier to get a bankruptcy as the laws were lenient. However since the new legislation was passed in 2005 it has become harder to get a bankruptcy and thus people have realized that getting a settlement is a better option.
The reason new laws were enacted to stop people from filing under chapter 7 unnecessarily. What this legislation has done is that it has set harder conditions which must be filled iva 個人自願安排. Now it is more likely that people will be ruled under chapter 13 which is a debt restructuring.
Debt settlement on the other hand has gotten a bit easier to get. The reason for this is that in order to get the financial companies out of the depression the Government gave out bailout money to these institutions. These institutions have used this money to make themselves stable. Part of this is that they are closing as many unsettled accounts as possible. So they are more willing to settlements because they have government bailout money.
In order to capitalize on this you need to seriously evaluate the option of getting debt relief. Your amount will be cut and will thus be easier for you to pay. The process for this is that you will have to arrange a meeting with your bank about this and tell them you cannot pay the full amount. You probably do not know much about financial institutions, processes or how to talk to them. Thus a much better option for you will be to hire some professionals for you. Yes you may be out of money but if your debt is sufficiently large then it will be worth it getting help from these companies.
The new bankruptcy laws are driving people towards settlements so companies for this are becoming more and more common. Some companies are also running scams; they charge you exorbitant fees and do not relieve that much of your dues. In order to avoid this from happening to you consult a relief network. A debt relief network knows which companies are legitimate and have a good track record. These networks serve the purpose of saving people from being scammed and keep a directory of good companies; companies which will actually help the person get a settlement not force them to pay even more.
If you are deep in debt and are getting worried and looking for bankruptcy tips then I have some advice for you. Bankruptcy is getting harder to get and will damage your credit score very much. However nowadays consumer debt settlements are surpassing bankruptcy due to some new laws.
Previously it was easier to file for chapter 7. A lot of people went bankrupt. However the financial institutions were not happy with this and this was hurting the economy. Eventually a new legislation was passed which is stricter. So now it is harder to get chapter 7. What is being focused now on is chapter 13 which is debt restructuring. In it you still have to pay back your loans but the law will decide what to do with you and how to force you to pay back your dues. You will either get 3 years or 5 years to pay it back depending on your income and some other conditions.
These legislation have led to lesser bailouts. However since there are still people having problems paying back their debts and can no longer file for bankruptcy or get it they are going towards debt settlements. The reason debt settlements are surpassing bankruptcy is that they are becoming a better option that bankruptcy.
Getting a debt settlement means you will still have to pay back some part of your debt. In debt settlement what happens is that you negotiate with your creditor. You tell them that you will not be able to pay your dues. Since you filing for bankruptcy would be a complete loss for them they agree to cut it down to something more manageable for you because they want to minimize their losses. So they may agree to reduce your debt. Sometimes they may even reduce it up to 70%. It all depends on some factors such as your financial health, income and others.
The hit your credit score will get from a debt settlement will also be lower than what you would have gotten from a bankruptcy filing. And once you pay the amount due the bank will consider your account settled. For this growing need there are many companies who will help you get a debt settlement for a fee. These companies will use their expertise to get the best deal for you. There are also some good debt relief networks which keep a check on these companies and you should contact these networks if you are thinking about getting a settlement.