In 2005, new credit card bankruptcy laws were passed. The laws impacted consumers in many ways.
Here are some ways to navigating this challenging process to ensure you never get ripped off-and ultimately get your finances back on the right track.
The new law makes it tougher for debtors to show they can clear their debts. It is termed the Fresh Start law for Chapter 7 bankruptcy.
If you were to file bankruptcy, you are likely to pay higher fees. Lawyers, especially a chapter 7 bankruptcy lawyer, are overcharging individuals now.
The rates were likely to increase to 100%, which accounts for the increased risk imposed upon consumers from the new law-which can drastically increase the cost of bankruptcy. Customers can also be prepared to spend more time filing documents.
Hold on to Your Assets
Some changes got into effect, which includes Chapter 7/13. If you file for credit card bankruptcy, your possessions are handed over to your creditors.
This is the new solution. If you file Chapter 13 then you can expect to stick to a repayment plan for 5 years. The law makes it difficult for people to file Chapter 7, hence most people are pushed to file Chapter 13.
Because of these new laws, creditors recovered a billion dollars. These fresh start laws make it real tough for anyone to file bankruptcy-whether of the credit card version or other offshoot like medical bankruptcy.
You have to attend meetings, go to counseling, and engage in other activities before the judge may even look at your case. Hence, it makes more sense to look for other alternatives to bankruptcy. Ok, but what about credit card bankruptcy?
Credit card bankruptcy falls under the same structure as the fresh start law. If you file bankruptcy, likely you will have to spend a great deal of time in court, give up your assets if you are able to file Chapter 7, or else spend the next five years paying off your debt.
What You Can Do
Because creditors gained millions of dollars consequently, services are available to provide you with other options over bankruptcy. With the credit card bailout option, consumers can reduce up to sixty percent of their financial debt. They do not have to worry about credit checks, possessing a home, etc, that gives the debtors an alternative to personal bankruptcy.
Some services ask you to have a job and have a minimum of $10k in unsecured debts to work with. It is worth taking the time online to research all your choices, even if you go independent with something similar to a diy bankruptcy, in order to bring financial peace of mind back to your life.
Learn more about the how to reduce your debt and stave off credit card bankruptcy. Stop by http://do-it-yourself-bankruptcy.com/ to find out how to permanently deal with mounting debt and provide peace of mind to yourself and your family.
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