Have you seen or heard the debt relief advertisements about how people who owe more than $10,000 in credit card debt can get relief under the Obama financial bailout plan?
It goes something like this: The relief given to large financial institutions under the economic stimulus plan is now available to Main Street. Large creditors were given billions in government stimulus money and now have more flexibility when it comes to negotiating personal debt bailouts through a debt settlement process The ads go on to say: A debt settlement company can negotiate a settlement of up to 60% and this will only have a minimal impact on your credit score.
Sounds like a pretty good deal.
It would be a good deal if it were true. There is no government bail out program that allows you to get out of debt.
Here are your options:
1. You can file for bankruptcy and your debts will be legally discharged.
2. You, or your attorney, can negotiate with your credit card companies. Each one has different guidelines.
3. You can let your creditors sue you. You may have some legal defenses. You can always negotiate.
Before signing up with any of these debt relief agencies, talk to a licensed attorney.
