However, bankruptcy is not the sole available option. The vast majority of creditors prefer debt settlement to bankruptcy. You should negotiate your debts with your creditor or a debt settlement company. The following are the primary reasons why creditors oppose your filing for bankruptcy:
• If a debtor declares bankruptcy, the creditor has slim possibilities of recovering anything. The legal battle can last for many years; additionally, the creditor must bear the cost of waging a legal battle, which is a massive and unnecessary expense. It is possible for the cost of the legal battle to exceed the quantity recovered.
• Financial institutions and banks prefer debt settlement over bankruptcy because they receive at least a portion of the debt from creditors, while the remainder is written off the debtor's balance. It affords them the opportunity to continue doing business with the same client, which would not be possible in the event of bankruptcy.
• The government of the United States provides tax benefits to these banks and financial institutions for providing debt settlement services to American citizens. In addition, they receive a variety of government subsidies.
In 2009, the United States government enacted new anti-recession policies. These new policies require various financial institutions and banks to negotiate with their debtors. According to the new policy, any U.S. citizen with debts exceeding $10,000 is eligible for debt settlement. This qualifies you to negotiate your debt directly with your creditor, or you can employ a professional debt settlement company.
In addition to the reasons enumerated above, there are numerous others. This new change in the behavior of these financial institutions improves their social image and presents them with a new identity in the minds of the general public. This is a tremendous boon for the reputation of these companies.""
" - https://www.affordablecebu.com/
