How new bankruptcy laws make debt settlement programs a better alternative

How new bankruptcy laws make debt settlement programs a better alternative "Recent changes to bankruptcy laws have made it much more difficult to qualify for Chapter 7 bankruptcy and have made debt settlement programs a more financially attractive option. Prior to filing for bankruptcy, consumers on the verge of insolvency should at least consider negotiating a settlement agreement. Thanks to new federal laws enacted on October 27, 2010, you will not be required to make any payments until your debt balances reach at least 60 percent of the original balance. This significantly enhances the legitimacy of the debt settlement procedure.The new bankruptcy laws were enacted in 2005, but we are only now beginning to experience their full effects. Chapter 7 bankruptcy is much more difficult to file and get approved for consumers. Chapter 7 bankruptcy is the ""fresh start"" form of bankruptcy in which the majority of your debt is completely discharged. This used to be a financially attractive option for many consumers and small businesses, but it is now much more difficult to qualify for and the application process is a nightmare.Ch.13 is more likely to apply to you. This is essentially a reorganization of your debts, and you will typically continue to repay the majority of your debts, albeit over a longer period of time. This is comparable to reaching a settlement agreement with one key distinction. The impact on your credit rating. A bankruptcy will have a negative impact on your credit score for at least seven years, whereas many people can recover from debt settlement within three years. If you have at least $10,000 in unsecured debt, you should strongly consider negotiating a debt settlement rather than filing for bankruptcy, particularly in light of these new federal laws.
" - https://www.affordablecebu.com/