As of 2014, more than 77 million people in the U.S. had at least one account reported as “in collection” on their credit reports, owing an average of $5,178 (median $1,349). Distressed debt results in collection lawsuits, a messy and error-prone credit report, and a potential need for bankruptcy. In other words, debt problems are legal problems, and an inability to resolve debt problems leads to legal consequences. What proposals are out there to address the legal aspects distressed debt? How would we know whether those proposals work?