A Bankruptcy Lawyer’s Blog

Personal Bankruptcy – Bankruptcy Laws Are Not As Beneficial As They Used to Be!

You cannot compare the old bankruptcy laws with the new ones. The loan takers are not getting a lot of advantages with the new bankruptcy laws. The United States government has brought this change after people started to take undue advantage of the personal bankruptcy option. They declared that they did not have any money left even when they had a handsome bank balance. Hence some new chapters were included in personal bankruptcy alternative. Along with bankruptcy, you will also have to file these chapters. These new chapters provide some advantages to the credit card companies.

The reason for changes in the bankruptcy laws

You can’t say that only loan takers are in a vulnerable position because credit card companies are closing down at a fast rate. They cannot force their customers to pay them. However, a year back the situation was very different. Loan takers did not an option to argue with their credit card companies. What would have happened if you had not paid your monthly installment? The following points would have been used by the credit card firm to claim the money from you.

1. A series of reminders would have been sent to you in the form of emails and telephone calls

2. The collection agencies would have dealt with you personally

The new bankruptcy laws are very different from the old ones. They are very severe and provide some new rights to the credit card companies. For instance, let’s talk about chapter 13. According to this chapter, the bank has the right to sell your belongings and properties to get its money. Hence, you need to pay a minimum sum under all conditions. This money has to be paid even if you are bankrupt. If you don’t then the bank has the right to liquidate your assets. Personal bankruptcy is not that favorable for loan takers now. In other words, it is a neutral option now.

It is better to ignore personal bankruptcy and go for debt settlement. You can get your liabilities reduced and pay the left over amount in a comfortable manner. You can bargain about the time period and the amount which you would be paying every month. In addition to that, you have the option to select a firm of your own choice. It is always advisable that the status of a relief firm should be confirmed to avoid scams and personal bankruptcy.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Help.