North Huntingdon, PA, November 24, 2010 --(PR.com
)-- Executives at ADMA Solutions, LLC, a debt settlement company, are alerting consumers to the continued increase in personal bankruptcy filings and are raising awareness about debt settlement as an alternative to bankruptcy.
Despite modest economic improvements from what many have called the Great Recession, individual bankruptcy filings increased for the third straight year, with 1.5 million Americans filing for bankruptcy in fiscal year 2010. In reaction to these findings, ADMA’s President Amy Michalo-Rojas is encouraging individuals to consider debt settlement, a step she says could help quell these figures.
“Obviously many people are unable to stay afloat, having been forced to rely on credit cards through long periods of unemployment and other financial hardships,” Michalo-Rojas said. “It is my hope that by educating consumers about debt settlement, we may be able to offer other debt resolution alternatives to indebted consumers.”
Debt settlement is a debt resolution program for people with overwhelming credit card debt who do not qualify for or do not want to file bankruptcy. Debt settlement companies, like ADMA Solutions, negotiate with their clients’ creditors until they reach a mutually-agreeable settlement that lets creditors collect a portion of the debt, instead of receiving nothing if the consumer were to file bankruptcy.
“Despite the increase in bankruptcy filings, it is still difficult for consumers to qualify for Chapter 7 bankruptcy, where most debts are discharged,” explains ADMA’s CEO Dave Leuthold. “Instead these consumers are often forced into Chapter 13 bankruptcy, which is similar to a repayment plan.”
The 2005 bankruptcy law severely restricted Chapter 7 eligibility, and yet bankruptcy filing rates have continued to increase ever since. There were 200,000 more bankruptcies in fiscal year 2010 compared to the previous year—a 14% increase. In addition, the unemployment rate is nearly 10% and mortgage foreclosure rates also remain high.
“Obviously too many families are continuing to struggle with their finances,” said Michalo-Rojas. “We hope that with increased education, we can provide a debt resolution option for indebted American consumers.”
Michalo-Rojas and Leuthold are encouraging struggling consumers to call ADMA to find out if they qualify for debt settlement.
For more information about ADMA Solutions, visit ADMAdebt.com/what-we-do or call 1-888-499-ADMA(2632).
About ADMA Solutions, LLC
ADMA Solutions, LLC, is a debt settlement company providing debt negotiation and settlement services to consumers who have significant financial or personal hardships. For more information call 1-888-499-ADMA (2362) or visit www.ADMADebt.com. ADMA is not a law firm and cannot provide legal advice. For advice or counsel regarding whether bankruptcy is a good option for you, you should seek the counsel of a bankruptcy attorney licensed in your state.