Get Out of Debt - Debt Settlement and the New Laws


Are you one of the many millions of people trying to get out of debt? With the economy in a downward spiral, more and more people are really tightening their belts, reducing their spending, and trying to reduce or eliminate their debt. But what if you are one of those people who have lost their job, or come upon hard financial times and find yourself having much more debt than income?

When you are stressed out about your debt, and there are collection agencies calling and writing you constantly, you may start thinking of drastic measures to get out of debt. There are some good options and some really bad options as well. What path you choose to take will really depend on your set of circumstances and how much debt you have.

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I have heard of some extreme ways that I would not recommend, such as saying that you have passed away, or something like that. That will ruin you and could be a potential legal mess if you decide to go this route, so doesn't do it. Not only that, if you "appear" to be dead, re-establishing credit will be impossible. Not only that, it is outright fraud.

Some people do consider bankruptcy to be extreme. That really all depends on your perspective and your situation. For some, bankruptcy may be the only option. However, since 2005 the laws concerning bankruptcy have change considerably and it is very important to know how to work within those laws so that everything gets handled correctly.

If you consider bankruptcy, then it is in your best interest to research and find a good bankruptcy attorney in your area. However, make sure that he is currently working within the new laws and that he has active cases. Otherwise, he may miss something that could come back to haunt you years down the road. It is a great idea to find someone through references if you choose to go this route.

However, there are other debt relief options to think about before this one. Finding good alternatives to bankruptcy may save you many headaches, and also preserve your credit rating. Debt Settlement is one of those options.


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