Is Debt Settlement Legal

Many people debate the question, is debt settlement legal, because it allows the consumer to get out of paying off some accrued financial obligations. Debt settlement programs are available to assist consumers in wiping out existing expenses without repaying complete totals. Offering an alternative to bankruptcy, court cases and never-ending collection calls, settlement or negotiation programs have proven to be the best option in some cases. For those who desperately need help in meeting their burdensome, unsecured loan obligations, yet still want to meet these honorably, an understanding of the legality of this issue can be important.

There can be release for any consumer who chooses a negotiation program to deal with outstanding, personal debt. These programs are offered for those who have experienced financial or personal hardships through health difficulties, job loss, divorce or other tragedies that make it impossible to meet payments on unsecured loans. For many, this will be an embarrassing and gut-wrenching situation in which to find themselves and their families. These consumers wish to avoid bankruptcy at all costs and are relieved to find that there is debt settlement legal and ethical freedom to choose another way.

Many clients who face overwhelming debt have no way to repay and need a way out. The understanding that a debt settlement program simply provides renegotiation of original contracts between lender and consumer is a welcome fact. Renegotiation can vary from a 35% to 70% loan reduction for the client. The legal and ethical basis for this renegotiation is satisfied through a new contract agreement between lenders and consumers facilitated by licensed, experienced arbitrators. Anyone who questions if there is debt settlement legal or ethical legitimacy for this debt relief option, can be assured of the honesty and integrity of the practice because of contractual agreements and personal, financial hardship recognition.

Settlement or negotiation programs usually will not accept a client unless approximately six months has passed without payment on credit card companies and other unsecured loans. The question is again answered by a lender's motivation to legally settle through negotiations. The desire to settle is markedly higher if it is apparent the lender will at least receive some repayment rather than apparently nothing. Whether or not there are options will be determined upon investigation of client credit history, present earning status, lenders involved, and legitimate hardship issues that have circumvented a client's ability to repay original loans. If there is debt settlement legal viability, the negotiation company will accept the case and proceed with arbitration on the behalf of the client. "He shall not be afraid of evil tidings: his heart is fixed, trusting in the Lord." (Psalm 112:7)

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