The process of debt settlement is not a newly invented process but it was present in the market from long time but not use or not known commonly some light is spread on it after a recession in the economy last year due to which many people lost their jobs and many of them receiving decrement in salary.
The process is use more and more due to the federal administration steps to save economy because many people file bankruptcy due to recession.
The process of debt settlement becomes more popularity due to the introduction of new law on debt settlement by government.
Though the process of debt settlement brings quick reduction in debt but still people hesitate to adopt it.
The main reason of hesitation is fake and fraudulent company people are afraid from those companies so they prefer to go with bankruptcy rather.
The fraud companies set a deal with borrower and then take fee of their future work then normally they not even talk to lender and after some time give us the news that they are unsuccessful with their lender when the client ask for money they refuse them.
Due to above reasons people lost their faith on settlement companies.
Bankruptcy is so popular due to these types of companies in market.
Due to more filing of bankruptcy which make economy worst government introduces some laws to support debt relief processes.
Government bound settlement companies to charge their fee after their success in reduction of their debt and even the companies not ask for fee during process.
Government also restricts settlement companies to charge much.
These new laws boost the morale of borrowers to go to the settlement companies these laws provide financial safeguard and protection to the money of consumer and by these law person would easily save from the trap of fake companies.
Due to these laws most of fake companies close their offices and now only genuine and legitimate companies are present in market to server you.
The process of debt settlement is also a good option for lender rather than bankruptcy so any one can easily rely on debt settlement companies due to new laws by federal administration.