How New Bankruptcy Laws Have Increased Consumer Debt Relief Options

How New Bankruptcy Laws Have Increased Consumer Debt Relief Options

If you are burdened with nerve killing debts, don't file for bankruptcy instead look for other consumer debt relief options which have paved there way every since the new law has made it nearly impossible and too expensive to file for bankruptcy. As recession spread like forest fires around the world, the number of people filing for bankruptcy has steadily climbed up the ladder. Causing numerous problems for the lenders and they kept on losing liquidity and they found it difficult to upkeep there own expenses with the reduced amount of cash flow.

When lending companies start falling into low levels of liquidity pool they themselves start heading for bankruptcy thus pushing the economy back into the clutches of recession.

To stop this government amended the bankruptcy laws and made it difficult for individuals to file for shortage of funds and get away scoot free.

The new ban bankruptcy laws have made it compulsory that those wishing to file for bankruptcy must qualify for it first. A person has to go through some severe credit counseling sessions where the credit counselors judge the possibility of the borrower being able to repay the debt based on the income structure and the necessity expenditure required versus the expenditure habits of the person. Say that a person claims not to be able to afford his monthly minimum and indulges in smoking it is clear that he has the money but spending it in all the wrong places.

If the counselors think that the individual will be able to repay back his loan in easy installments with a little modification in the spending pattern and the elimination of unnecessary expenses, the person will not be allowed to file for bankruptcy.

This is made the entire process complicated, lengthy and an increase in the legal hassles.

Rising problems have helped the alternatives of bankruptcy to rise and increase in choices. Other consumer debt relief options such as debt management, debt consolidation and debt settlement have become increasing popular as they do not come with a bundle of legal hassles and long sessions with lawyers and credit counseling sessions all which come hand in hand with filing for bankruptcy.

Further more, these ways of debt management do not hit hard on your credit score. It will of course take a downward fall temporarily but it is not likely to affect you for that long or that hard as filing for bankruptcy would. But your credit history would gain normality after you are over the debt.

Thus think of other options you have lying around. You can even contact your local non profit organizations which offer you free services for debt management.

Spend wisely, live happily!

Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

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