The current economic conditions have led many people to face the issue of debt. There are many factors that contribute to financial difficulties. Among them are the burst of the housing bubble, job loss, layoffs, divorce and significant medical expenses. Luckily, the government provides an opportunity for those who are drowning in debt to get their heads back above water through bankruptcy.

Debt-strapped consumers are being warned by consumer advocates that using debt settlement companies could leave them deeper in debt. The Commissioner of the Federal Trade Commission has spoken out in regard to the need for greater regulation over the debt-settlement industry.

Personal bankruptcies hit a record high last year in Central Florida, and this year's total may be even larger. Rising bankruptcy levels are an indication of the continued personal hardships families and small businesses are facing during the recession.

Brief Overview of Loan Modifications, Short Sales, Bankruptcy and Other Remedies to Avoid Foreclosure. As the mortgage crisis has unfolded across the United States, Florida has had the unfortunate distinction of leading the nation in home foreclosures. Many Florida homeowners are considered "underwater" on their mortgages because the amount they owe in mortgage debt is now more than the property is worth.

The much anticipated Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 became law on May 22, 2009; however, most of the provisions of the act do not become effective until February 22, 2010. Several important provisions of CARD are already in effect are impacting consumers and lenders.