In 2005, new credit card bankruptcy laws were passed. The laws impacted consumers in numerous ways.
Below are a few ways to navigating this challenging process to ensure you do not get ripped off-and hopefully get your finances back on track.
Increased Fees
The new law makes it harder for debtors to prove they can clear their debts. It is called 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 go up 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.
Keep 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 fresh start solution. If you file Chapter 13 then you will expect to adhere to a repayment plan for five years. The law has made it difficult for people to file Chapter 7, so most people are forced 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. Consequently, it makes more sense to get 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 Are Able To Do
Because creditors gained billions of dollars as a result, services are available to give you other options over bankruptcy. Under the credit card bailout solution, consumers can erase up to 60 percent of their debts. They don't have to worry about credit checks, owning a home, etc, which gives the debtors an alternative to bankruptcy.
Some services require that you have a job and have at least $10k in unsecured debts to apply. It is worth spending some time online to research all your options, even if you go independent with something like a do it yourself bankruptcy, so you can bring financial sanity back to your life.
Below are a few ways to navigating this challenging process to ensure you do not get ripped off-and hopefully get your finances back on track.
Increased Fees
The new law makes it harder for debtors to prove they can clear their debts. It is called 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 go up 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.
Keep 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 fresh start solution. If you file Chapter 13 then you will expect to adhere to a repayment plan for five years. The law has made it difficult for people to file Chapter 7, so most people are forced 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. Consequently, it makes more sense to get 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 Are Able To Do
Because creditors gained billions of dollars as a result, services are available to give you other options over bankruptcy. Under the credit card bailout solution, consumers can erase up to 60 percent of their debts. They don't have to worry about credit checks, owning a home, etc, which gives the debtors an alternative to bankruptcy.
Some services require that you have a job and have at least $10k in unsecured debts to apply. It is worth spending some time online to research all your options, even if you go independent with something like a do it yourself bankruptcy, so you can bring financial sanity back to your life.
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