For borrowers suffering the many humiliations largeand small of debts increasing beyond their control, there are actuallyseveral different forms of debt relief available to average consumers.What may surprise most Americans, actually, is the extent to whichbankruptcy will no longer be considered among the debt reliefalternatives that seasoned financial advisors recommend to mostclients. Three years ago, while the economy was still relatively robustand the media was distracted by Iraq war coverage, the congress slippedin a few seemingly minor alterations to the United States bankruptcycode that went on to weaken tremendously the protection available.Unfortunately, at this present time, with debt loads, inflation andunemployment spiraling even as property values fall across the nation,consumers are only now beginning to understand that the debtelimination program they had always assumed to be a final outlet forunpayable burdens may no longer exist.

The full meaning of thislegislation would take far too long to fully explain, but, suffice tosay, court trustees must now strictly follow Internal Revenue Serviceguidelines before rendering any decision on the feasibility of protection. Worse yet, even for those few borrowers whose incomes aresufficiently low for practical consideration, thosethat somehow manage to successfully declare for the debt eliminationprogram will find that virtually all assets (including, by theviewpoint of the Internal Revenue Service, the computer you are readingthis article on, the table that supports that computer, the rugunderneath said table, and so on) are now subject to potential seizurefor auction so as to immediately repay their creditors. Every consumerthat fails to meet the new and comically harsh standards for bankruptcy protection will instead be passed toward the debtre-structuring program. This is, indeed, a form of debt relief, but, aswith anything controlled utterly by governmental regulations thatignore the day to day needs of private citizens, it is debt relief ofabsolutely the ugliest and most damaging sort.

After a bankruptcynotice appears on the credit report, borrowers will at least never needto worry about debt relief again. After the recording of a Chapter 13,even though essentially all bills will be paid by the filer and rathermore quickly than would be pleasant, said borrowers will never againhave the opportunity to be offered credit accounts for many, manyyears. Even used car salesmen will back away, shaking their heads.

Toput it plainly, Chapter 13 has all the deprivations and forcedbudgeting of the harshest debt settlement programs alongside the creditshattering repercussions of debt elimination bankruptcy. The programdoes, in the loosest possible sense, offer some relief to debtorsutterly without any other hope. There will always be a final outlet.Still, Chapter 13 should not even be talked about in the same breath asdebt consolidation or debt settlement. It simply has no possibleadvantage or benefits compared to the other debt relief alternatives.Compared to robbing a liquor store or selling one's organs, Chapter 13protection may come out on top as a sound lifestyle choice, but onlyjust.