There has been so much written, and a lot by me, of deceptive and poor debt settlement actions taken by consumer debt settlement companies that apparently have no clue what they are doing in the field.
For many years I have defended the use of debt settlement in the right situation. The problem has been debt settlement was sold as a one size fits all solution and it simply is not.
I’ve written before about the history of debt settlement and the use of the negotiated technique to work out an outstanding obligation. But I bet you didn’t know the federal government even has a special program to settle debt for family farmers.
The Rural Housing Service runs a Debt Settlement Community and Business Program they describe by saying:
The Community and Direct Business Programs loans and grants are authorized by the Consolidated Farm and Rural Development Act. Rural Housing Service (RHS) is a credit agency for agricultural and rural development for the United States Department of Agriculture and offers supervised credit to develop, improve and operate family farms, modest housing, essential community facilities, and business and industry across rural America. The Debt Settlement Community and Business Programs provides policies and procedures as well as a mechanism for debt settlement in connection with Community Facilities loans and grants, direct Business and Industry loans, Indian Tribal Land Acquisition loans and Irrigation and Drainage. The debt settlement program provides the delinquent client with an equitable tool for the compromise, adjustment, cancellation, or chargeoff of a debt owed to the Agency.
So there you go, a positive use of debt settlement.