subject: Debt Relief - How Tough Bankruptcy Laws Make Debt Settlement More Popular With Consumers [print this page] Why are so many people eager to file bankruptcy applications? Your entire market reputation goes down the drain if you run out of monetary funds. However recession has revealed a new angle of bankruptcy. This is the easiest way to escape all kinds of liability issues. However, this is only the bright side. The other side is quite scary. If you are a businessman, people will stop trusting your. Your loan applications will be rejected and you will lose your employment. Even if you don't pay your bills, the credit card company will file a law suit against you and push you to bankruptcy. In this situation, which solution is appropriate? Debt relief is a legitimate option to deal with unsecured liability issues.
The new bankruptcy laws are much tougher; debt relief is an easier option
Why have the bankruptcy regulations being changed? A lot of loan takers were taking undue advantage of this financial leverage.
According to the old regulations, your creditor loses everything if you reach the insolvency state. This condition proved to be very painful for credit card companies. A lot of people who were financially strong applied for bankruptcy. This turned the financial situation from bad to worse and a lot of money granting companies closed down in the United States.
The new rules are very different from the old ones. You need to prove that you deserve the bankruptcy application. You have two options. You have to file an application for chapter 7 or chapter 13. In case of chapter 7, your monthly earning is the decisive factor. Your monthly salary should not be equal to or more than the average monthly income of your state. If you qualify according to this condition, you don't have to pay anything.
Chapter 13 portrays the strictness of the new bankruptcy regulations
You should select one of the debt relief options instead of applying for bankruptcy through chapter 13. Here is what this option has to offer.
The payable amount remains unchanged. However, the payment terms are made more flexible. For instance, the credit card company may give you more time to pay your dues. Apart from that, your credit score reaches the lowest limit.
Bankruptcy was never a very lucrative option. It is a negative option which affects you in the long run. You can find a number of reliable debt relief companies on the internet. Debt relief solutions are legitimate and extremely effective as well.
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.
Debt Relief - How Tough Bankruptcy Laws Make Debt Settlement More Popular With Consumers
