The simple answer to this complex question is ...
YES.
Debt Negotiation is a legal solution, used by thousands of Americans to avoid having to declare bankruptcy.
The theory behind the negotiation of debt is very simple: to negotiate agreements with financial institutions, which benefits both sides.
This leads to the bank receives a single payment in the amount agreed to settle the debt and the consumer pays the entire debt for a lower percentage.
But the biggest advantage of debt negotiation is to avoid future problems with the payments because the debt is canceled in its entirety.
In no time the consumer is breaking the law or committing illegal acts.
So if the answer is as simple as the question seems so complicated? The real problem in the negotiation of debt is not that the practice is illegal because it is perfectly legal; the problem is in the ethics of those involved in it.
Unfortunately, some companies have no debt negotiation ethics and take advantage of a bad time for the person who's going to benefit.
What they do essentially is that the person you promise unrealistic results, and then charge you large sums of money for work never done.
Therefore it is important to note that the legislation was not so much to protect the debt negotiation companies but for consumers who are unaware of the regulations.
That is why these companies need to complete forms and comply with laws in order to have more control over them.
This helps the government to identify which companies are not ethical in an industry should be ethical and legal.
The idea is that companies that do not meet the requirements disappear.
So if you want to join a company to negotiate your debts, stay calm because they are going to do what is ethically and morally right, just make sure that the company will also choose to be.
Negotiating your debt or reducing your monthly credit payments is always a better solution than bankruptcy.