With debt amount paramounting every day, bankruptcy is the most usual case.
Almost every citizen of the country is reeking under huge piles of dues that they are unable to clear.
The only option that seems to be open to them is to file for bankruptcy.
But with the new amendments made to the bankruptcy laws, the people and companies, who are on the verge of bankruptcy, now find it a threatening option to file for it.
It is noticed that the debt settlement relief, which the laws talk about, provide greater boost to the debt settlement industry instead of helping the victims.
According to the new bankruptcy laws, the insolvent persons or the companies have to pass the mean tests, which will asses their net expenditure and net income.
Suppose the net outgoing amount is more than the net incoming amount, only then will you be allowed to file for bankruptcy.
Otherwise the consolation provided is the option of debt settlement.
The changes in the bankruptcy laws also demand that a certain amount has to be paid to the creditor; even you are declared a bankrupt.
Thus you are liable to pay even after the liquefaction of your assets.
It is too high a price to pay, for the insolvents, who are already drowned in their dues.
But if you are a good player, you may profit something from the law, especially if your debt is on the higher side.
Sometimes to file for bankruptcy, you have to approach a finance expert, which may be quite an expensive task at the moment.
Hence more of the people tend to opt for debt consolidation, in the hope of a secure future.
Thus, in this way, the new bankruptcy laws are increasing the generation of debt settlement relief, in the market.
But the sagacious decision that you can take, while opting for liability consolidation, is to approach a legitimate debt consolidation company, which will give you a right direction to lead a debt-free life.
Hence the trick is to use the new laws but avail it in such a way that even the cons of the system add value to your economic life.