The jury is in and a debt settlement program has proven to be useful.

In 2005 there was a modification in the bankruptcy legislation. The change in the law has made it much harder for a American to qualify for Chapter 7. A Chapter 7 will completely wipe the slate clean of the debts owed. If someone dosen’t pass the “means test” to be excepted for Chapter 7 then they must look to go through what’s called a Chapter 13. With a Chapter 13 the court will evaluate your complete financial circumstance to decide how much you will be forced to pay back towards your debts over the course of 5 years.