Consumer Rights Regarding Debt Collection - Understanding Debt Settlement & Income Taxes
You must know your consumer rights regarding debt collection.
This is because of the fact that the money that you give back to the creditors is your hard earned money and you have all the rights to enjoy a healthy financial life.
After America was hit by recession, thousands of people lost their jobs and these people failed to repay their debts.
Once they became defaulters, they started filing for bankruptcy.
It is because of this reason that the number of bankruptcy filings increased steadily.
As bankruptcy filing increased rapidly, the creditors began to lose.
They lost their liquidity and they failed to manage their costs.
They lost financial equilibrium and reached the verge of operational shutdown because they themselves became bankrupt.
The economy as a whole suffered and the Federal economy rolled further back into recession.
This caused trouble for everyone! To take care of this situation, the US govt.
took steps! The govt.
introduced tax breaks for the creditors and also pumped in billions of dollars into the economy.
This money is known as the stimulus cash.
It was declared by the govt.
that the creditors who agreed for settlement deals can enjoy these facilities.
The creditors saw that once they agree for settlement, they will lose some money that they give to the consumers as credit but at the same time, the loss that they bear will be covered by the reduction the income tax that they pay to the govt.
This means that they get some relief.
Also, the amount of money that they need to cover up the organizational costs that they have is provided by the stimulus cash.
This means that if they go for settlement, they will ultimately not lose.
It is because of this reason that the creditors became open to the settlement deals.
The consumers on the other hand enjoyed reduction in debt.
This helped the consumers to get back on a healthy financial track.
Thus debt settlement became a viable option for the consumers who are suffering from huge debts.
It has now become the right of the consumers to enjoy settlement deals.
Thus, if the creditors, refuse to go for settlement, you can report the same to the governing body! It is time that you know your rights!
This is because of the fact that the money that you give back to the creditors is your hard earned money and you have all the rights to enjoy a healthy financial life.
After America was hit by recession, thousands of people lost their jobs and these people failed to repay their debts.
Once they became defaulters, they started filing for bankruptcy.
It is because of this reason that the number of bankruptcy filings increased steadily.
As bankruptcy filing increased rapidly, the creditors began to lose.
They lost their liquidity and they failed to manage their costs.
They lost financial equilibrium and reached the verge of operational shutdown because they themselves became bankrupt.
The economy as a whole suffered and the Federal economy rolled further back into recession.
This caused trouble for everyone! To take care of this situation, the US govt.
took steps! The govt.
introduced tax breaks for the creditors and also pumped in billions of dollars into the economy.
This money is known as the stimulus cash.
It was declared by the govt.
that the creditors who agreed for settlement deals can enjoy these facilities.
The creditors saw that once they agree for settlement, they will lose some money that they give to the consumers as credit but at the same time, the loss that they bear will be covered by the reduction the income tax that they pay to the govt.
This means that they get some relief.
Also, the amount of money that they need to cover up the organizational costs that they have is provided by the stimulus cash.
This means that if they go for settlement, they will ultimately not lose.
It is because of this reason that the creditors became open to the settlement deals.
The consumers on the other hand enjoyed reduction in debt.
This helped the consumers to get back on a healthy financial track.
Thus debt settlement became a viable option for the consumers who are suffering from huge debts.
It has now become the right of the consumers to enjoy settlement deals.
Thus, if the creditors, refuse to go for settlement, you can report the same to the governing body! It is time that you know your rights!