Debt settlement consumer protection act came into existence after the Federal economy was hit by recession and the country saw an uncontrolled increase in the number of bankruptcy filing.
As more and more people filed for bankruptcy, the economy became further unstable.
This is because of the fact that the creditors began to lose their liquidity and they failed to manage their costs.
As this happened, they lost their financial equilibrium and approached the verge of bankruptcy and operational shutdown.
This caused huge instability in the economy and the economy as a whole suffered because it rolled further back into recession.
This was a major hit for the US economy and this forced the Federal govt.
to put forward the debt settlement consumer protection act in place so that the consumers avoid bankruptcy.
With this new act, filing for bankruptcy became difficult and people needed to qualify for bankruptcy.
The counselors judged (on the basis of a consumer's income and expenditure) whether a person needs to file for bankruptcy or not.
The Federal govt.
introduced tax breaks for the creditors and also announced stimulus money so that the creditors become more open to the debt settlement deals.
It is because of this reason that you can protect yourself from debt without affecting the credit score that you have.
As a matter of fact, your credit score will go down during the settlement process but will again be revived once you get a settlement deal with the creditor and repay the remaining amount of the debt to the lender.
All that you need to do is to make sure that you have an over all credit debt of $10,000 or more and then you need to hire a professional debt settlement company.
The professional negotiator from the company will then assist you in getting out of your loan.
You need to do exactly what the negotiator asks you to do.
You need to stop paying the creditor and when the creditor sells off the debt to a collection agency, the negotiator contacts the creditor and strikes a deal that is in your favor and the creditor eliminates a certain percentage of the debt that you have.
The creditor readily agrees to the offer that the negotiator puts forward because of the fact that the lender never wants you to file for bankruptcy as the lender will lose liquidity if you do so.
This is how you protect yourself from debt with debt settlement consumer protection act.
As more and more people filed for bankruptcy, the economy became further unstable.
This is because of the fact that the creditors began to lose their liquidity and they failed to manage their costs.
As this happened, they lost their financial equilibrium and approached the verge of bankruptcy and operational shutdown.
This caused huge instability in the economy and the economy as a whole suffered because it rolled further back into recession.
This was a major hit for the US economy and this forced the Federal govt.
to put forward the debt settlement consumer protection act in place so that the consumers avoid bankruptcy.
With this new act, filing for bankruptcy became difficult and people needed to qualify for bankruptcy.
The counselors judged (on the basis of a consumer's income and expenditure) whether a person needs to file for bankruptcy or not.
The Federal govt.
introduced tax breaks for the creditors and also announced stimulus money so that the creditors become more open to the debt settlement deals.
It is because of this reason that you can protect yourself from debt without affecting the credit score that you have.
As a matter of fact, your credit score will go down during the settlement process but will again be revived once you get a settlement deal with the creditor and repay the remaining amount of the debt to the lender.
All that you need to do is to make sure that you have an over all credit debt of $10,000 or more and then you need to hire a professional debt settlement company.
The professional negotiator from the company will then assist you in getting out of your loan.
You need to do exactly what the negotiator asks you to do.
You need to stop paying the creditor and when the creditor sells off the debt to a collection agency, the negotiator contacts the creditor and strikes a deal that is in your favor and the creditor eliminates a certain percentage of the debt that you have.
The creditor readily agrees to the offer that the negotiator puts forward because of the fact that the lender never wants you to file for bankruptcy as the lender will lose liquidity if you do so.
This is how you protect yourself from debt with debt settlement consumer protection act.
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