Debt management and restructuring programs are available in Florida and for those who reside elsewhere. There are a variety of programs designed to manage and pay one's unsecured debt that has built up to unmanageable proportions. Debt restructuring and management methods are not always successful, however, and if one's debt load has reached a certain point of no return, it may be necessary to file bankruptcy as the option of choice.
One should research thoroughly before signing up with a particular debt relief program. Check the organization with the Better Business Bureau and make sure that it has not been involved in any type of official investigation or disciplinary action. Some companies do not place their ethical commitments to their clients as their highest priorities. Do not sign up for a company's services if it asks for a large down payment prior to doing any work; that is a sure sign that something is amiss, and that there may be a negative outcome to the experience.
Non-profit debt management companies, certified by national accrediting methods, are generally trustworthy sources of assistance. These companies provide qualified financial counselors to assist the consumer in setting up a budget, cutting down on expenses and molding a financial plan that will focus on paying off debt. However, if the debt load is too high, these organizations will likely recommend other options, even including bankruptcy where necessary. In addition, some debt relief companies will negotiate with the consumer's creditors for significant reductions in the amount owed.
These companies will often collect a single monthly amount and parcel payments out to the creditors. There are problems with this debt restructuring method, however, because the consumer may not be able to handle the financial demands, and the result will be more pressure and anxiety. When it is impractical to pay back the debt without spending many years of sacrifice under extreme pressure, the option that far exceeds all other remedies is a Chapter 7 bankruptcy. This remedy, provided by federal law to qualified participants in Florida and nationwide, will quickly and permanently eliminate all unsecured debt without the need to repay creditors.
Source: theurbantwist.com, "Facts about How Does National Debt Relief Work", Nov. 6, 2017