For those who attempt to resolve their debt problems by consulting a debt negotiation company, there are special precautions to take and issues to consider prior to committing to that debt relief alternative. The most important guideline is to find a reputable, established company that follows the consumer-friendly debt negotiation rules adopted by the Federal Trade Commission. At the same time, an individual or couple residing in Arkansas will be well-served by also evaluating their debt situation very carefully to determine whether a bankruptcy authorized by federal law will be the better and more effective way of obtaining maximum debt relief.
There are several forms of debt relief available for consumers, including credit counseling, debt negotiations, debt consolidation and the remedies embodied in federal bankruptcy law. Each of the non-bankruptcy alternatives involves paying off debt, either in part or in full. In each of those methods, consumers will make payments for years, hoping to see a light at the end of the tunnel. Indeed, some consumers who start with a small, manageable debt load may see that light at some point in the future.
In most other instances, however, a hard-headed calculation of the pros and cons of the options point overwhelmingly to bankruptcy as the one remedy that cleans out unsecured debt quickly and permanently. Bankruptcy is available to qualified consumers by the provisions of the U.S. Bankruptcy Code. This remedy offers a swift and permanent freedom from the chains that bind some consumers year-after-year to a vast host of relentless debt collection agencies.
In a Chapter 7 bankruptcy filing in Arkansas, creditors and collection agencies must immediately cease collection activities, and usually are not heard from again. By all means, consumers with debt difficulties should investigate all alternatives available to resolve their problems. However, for those with significant amounts of unsecured personal loans, credit card balances, and medical bills, bankruptcy relief is usually discovered to be the best and only way for an individual or married couple to wipe the slate clean and get a fresh start within a matter of months.
Source: wdam.com, “Questions to ask a debt negotiation company”, Andrew Housser, Oct. 23, 2015