Lately, you can’t turn on the TV without seeing a commercial for a bankruptcy law firm or some kind of debt settlement company. The funny thing is that half of these commercials are during news reports that unemployment rates have dropped to 6.7% and the economy has fully recovered. The Dow Jones last year set all-time highs and the NASDAQ has almost risen to the height of the Internet bubble. There are no fundamentals that are driving this market. Many experts who have studied the market and are honest believe that quantitative easing has been the driving force behind the record numbers in the stock market, not an economic recovery. One day a global currency crisis hits causing a massive sell-off only to recover from the better-than-expected earnings news of a single company. I don’t know about you, but it doesn’t make sense to me.

It’s no secret that the most popular form of debt elimination is to file for bankruptcy. In recent years, since the economy went into recession, many alternatives to filing for bankruptcy have emerged. People need to be very careful, as things that sound too good to be true are probably too good to be true. Every time the economy goes to tank, creative solutions enter the market, some of which are scams. Look back over the last 50 years and you will see different scams that emerged during times of economic decline. We’ve seen everything from pyramids to multi-level marketing companies promising wealth and financial security. Like I said before, if it sounds too good to be true, it is. The old adage that the only way to make it is through hard work holds true in our culture today. People want it now and they don’t care what it costs to get it and we’re not talking about price. Like the housing crisis before the bubble burst in 2007, people bought houses they couldn’t afford simply because they believed they were worth it.

Before looking at the alternatives, a person should definitely consult a bankruptcy attorney to see if they qualify to file for Chapter 7 bankruptcy. This will at least give them advance notice if the alternatives don’t work, they still have an ace up their sleeve. . A bankruptcy attorney will be honest with the person considering filing. Filing bankruptcy is not for everyone and attorneys know it. But the lawyer also knows the disadvantages of debt settlement and debt consolidation. They should be able to shed light on the individual’s personal financial situation and let you know if any of these other options are feasible.

An alternative to filing for bankruptcy is debt settlement. Recently, there have been many debt settlement companies that have sprung up in the down economy. What happens in a debt settlement is that the company collects the money that would be paid as payment to creditors over a period of time to accumulate enough money to try to pay off the debts. Most debt settlement companies will offer creditors 50% of what is owed. For someone who has credit card debt of $10,000 or less, this could be a viable option. For someone who has a lot more, it really isn’t feasible and filing for bankruptcy is much more cost-effective. This option has become very popular in recent years, but interested persons should be careful as there are many night flight operations out there. People should first seek references before attempting any type of debt settlement. One thing to remember, most debt settlement companies will not share the information that anyone can negotiate with their own creditors if they feel up to it. The same negotiations will apply to an individual trying to pay off her debt as much as the company would. Before doing anything, one should check all their options.