Do Not File Bankruptcy – How New Bankruptcy Laws Make Debt Settlement a Better Choice

Bankruptcy is a federal court process that allows people to eliminate their debts and be protected by the bankruptcy courts. There are two main types of bankruptcy, they are, chapter 7 and chapter 13. Although there is other chapters most people do not qualify for these types of bankruptcy proceedings. Both have rules and guidelines that you have to follow and both are part of a very time consuming process.Economic ChangesThe laws governing bankruptcy continue to change every year, often making it harder and harder for people to file. Some laws make filing for bankruptcy so difficult that often debt settlement is a better choice. The currently economic financial situation is putting more and more families in the situation where they need to take drastic action to get by. We are in hard financial times, people are really struggling. As people have watched changes in their income, savings and retirement accounts the government has been making changes to the rules that govern filing for bankruptcy. People are now finding that it is a better choice to follow a path to debt settlement than to file for bankruptcy.Debt SettlementBefore filing for bankruptcy you should check out debt settlement as an option. There are literally hundreds of agencies out there that do not charge the consumer. They work with you and your creditors to a lower rates and payments. They can consolidate your debt into one workable payment each month actually allowing you to get ahead and out from under crippling debt.Credit counseling will also offer you training on financial planning. They will help to give you the skills to move forward from a healthy financial place so they when you are out of debt you can stay that they. Debt settlement agencies are great resources for anyone who feels that they will not be able to get out from under their debts and thinking that bankruptcy is the only option. Don’t file for bankruptcy; debt settlement is a much better option.How to Find the Right AgencyThere are so many debt relief agencies and debt consolidation agencies out there that it is hard to know which one might be right for you. There are many debt relief networks out there that list different agencies giving them ratings on their services and information on their business. It is important to check out as much information on an agency as you can before entering into an agreement with them.The Better Business Bureau is always a good resource before starting to work with any business. Make sure that there is a physical address and easy to locate contact information if you are searching online. Consult with a debt settlement attorney to really help you through the process if you don’t have time or resources to do the foot work yourself.