subject: New Bankruptcy Laws - How New Legislation Aids Consumers in Paying Back Debt [print this page] New Bankruptcy Laws - How New Legislation Aids Consumers in Paying Back Debt
With the whole world economy shaking and fluttering due to the financial crisis and the economic crunch which has entangled everyone from big finance institutions to the common man, everyone is looking desperately for some debt reduction help. The federal government has brought in some drastic changes in the new provision designed to control debts and help consumers in repaying their loans rather than filing for bankruptcy. An unprecedented reduction in the bankruptcy cases is expected in the recent times after the new Credit card regulations have come into effect.
Few years back the most viable and lucrative alternative in front of the customers seemed to be filing for bankruptcy but with the recent changes and modifications in the Bankruptcy Laws and credit card policies it is harder to file for it. The new propositions of the federal law for filing bankruptcy are- a test to determine the financial eligibility of the debtor to file, an eight year moratorium if caught filing for the bankruptcy a second time, mandatory debt management and counseling sessions for credit. With these laws coming into effect the debtors have become more inclined towards paying their debt with the help of debt settlement and debt consolidation techniques rather than going for bankruptcy. The other components of this law like stricter finance charge and increase in interest rate rules, no hike in interest rate for the first 12 months, giving 45 days notice to the consumers before increasing interest rate or making any changes in your credit card agreement, banning the universal default practice.
All the above New Legislation Aids are of a great help to the customers in paying back their debt in a legal and ethical way. They no longer have to deal with the predatory and unfair tactics applied by the Credit card companies designed to get as much money as possible from the customers. With the ease in credit card laws and with aid of legal debt settlement programs you can actually look forward to a debt free life.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.
