People are always comparing bankruptcy Vs. Debt settlement and through this comparison they have determined that Liability settlement is a more feasible option than bankruptcy. While comparing bankruptcy Vs. Debt settlement one can easily draw a line between solving matters ethically and unethically.Debt settlement is a liability relief option through which liability reduction takes place. The debtor negotiates with his lender and he tries to obtain a huge reduction in the amount of money he has to repay. After getting a discount the debtor pays the remaining amount and is legally free from issues and troubles he had to face due to liability. This method was formulated while keeping the draw backs of bankruptcy in notice. A debtor can gain a huge percentage of discounts by hiring professional liability negotiation services. The debtor had to make sure that the services he has hired are legitimate and they do not fraud innocent people.Many cheating companies started to establish as debt negotiation gained popularity. These companies indulged in mal practices such as charging front up fee before providing any service and then vanishing in thin air without assisting the client at all. Many even used illegal practices to aid the debtors this caused severe problems for the debtors and debtors had to face legal law suits.Due to these companies; debtors started moving back to insolvency and the economy of America was once again near the problems created by insolvency. To stop this from happening; the government made a new rule in this method. According to this new approved and practiced rule; no settlement firms are allowed to charge any kind of up front consideration without providing full service and until the entire negotiation process is over. Due to this new rule people started exercising liability settlement once again as they are now facing less difficulties in hiring legitimate debt negotiation service providers.Many fraud firms have left the industry making selection easier for the debtors. The government has aided and supported this method through different rules and plans. They have done so to help the public of America and to save the public of America from the issues created by bankruptcy. Debt negotiations is the best alternative to insolvency and people who have very less money left or have no money to solve their liability issues should exercise this option and secure their own future.