Till the mid of this year, debtors were used to file for bankruptcy as they were tired of the fraudulent self made policies of the settlement firms working in the industry.
Debtors were going for bankruptcy group after group and this trend was causing recession in the economy.
People were filing bankruptcy cases with the confidence that it is a legal way of eliminating the debts and no person has any right to ask for the repayment of the debts once they file a petition for the bankruptcy.
This is true that it is a recognized method for debt elimination introduced by the government.
People were unconscious that by officially appealing for bankruptcy, they are losing their credibility of getting advance in the near future for meeting their unintentional expenses and now the economy is facing financial disaster due to their actions.
So for reestablishing the economy and removing the negative effects of bankruptcy, the federal trade commission has reconstructed the rules for debt settlement.
New rules formulated by the FTC for the settlement of debts are inviting the debtors to choose various relief options other than bankruptcy.
These laws are valid and dependable enough for assisting the economy and debtors.
These rules have rebuilt the confidence of the debtors in the relief options.
FTC has discouraged the credit card companies from charging high rate of interest on the credit cards and has directed the debtors to pay the service charges after getting reductions in the lent amount.
Now people are getting services of the settlement firms and are paying the service charges in the end of the settlement.
Fraudulent businesses have been ended with the introduction of the new laws.
Negotiators are endorsing the transactions to the creditors and are trying their level best for eliminating maximum amount of debts.
In other words, they are offering high quality and well turned-out services to the debtors for getting their revenues.
So it means that a debtor can avail the services of the relief firm without paying any dime.