Credit Card Debt Bankruptcy - How New Federal Laws Make Filing Bankruptcy Less Attractive
Online, November 8, 2010 (Newswire.com) - Coming off the worst economic recession since the Great Depression there are still more Americans on the verge of credit card debt bankruptcy than ever before. Many consumers who are experiencing a financial hardship will typically put credit card debt on the back burner. There are some legitimate debt relief alternatives to filing bankruptcy and it's important that consumers understand all their options before they make such a big decision.
First of all, the new bankruptcy laws which went into effect in 2005 have made filing for Ch. 7 bankruptcy much more difficult. The application process is much more stringent and even if you make it through the application process chances are that you will only qualify for Ch. 13 bankruptcy. Ch. 13 bankruptcy is far less advantageous than Ch. 7. Only consumers that have absolutely no income coming in and have no asset value will qualify for Ch. 7.
With bankruptcy becoming a financial nightmare and headache of a process, many consumers have resorted to other debt relief options. One of these options is debt settlement. Debt Settlement is considered a legitimate alternative to filing bankruptcy and is an option for consumers with at least $10,000 in unsecured debt.
If you are experiencing a legitimate financial hardship and are in need of credit card debt relief, then debt settlement can be a good option. Thanks to new federal laws recently passed on October 27 2010, debt settlement companies are no longer allowed to charge upfront fees. This means if they can't successfully negotiate a 50-60% reduction in your overall balance,...you don't pay a dime. This new legislation has cleaned up the industry and made debt settlement a legitimate option for getting debt relief.
What used to be a very risky option for debt relief might now be the most cost effective. You won't have to pay upfront fees anymore so if your debt settlement program can't negotiate a successful settlement then you won't have to pay for it.
Check out the following link for free debt help from a licensed debt relief specialist. They will go over all your options to help determined what debt relief option makes the most financial sense for you.
