subject: How the Debt Settlement Market Has Been Affected by New Bankruptcy Laws [print this page] The changing economic scenario of America has urged to revise the bankruptcy code. Due to declaration of insolvency, many people got away from not paying even a single penny to the creditors. They got away scot free and even got to keep their assets.
Such being the state of financial affairs concerns were raised for the threat of existence of the financial institutions. People suffering losses due to recession got relief through filling insolvency. But this led to a shift of financial burden on to the banks. The changes in the bankruptcy law clearly mention that even if you file for bankruptcy, you will be liable to still pay back some part of the debt to your creditors with an exception of a few uncommon circumstances. The amendment goes further in stating that you might be declared bankrupt and still be made to pay the full amount even after all your assets are repossessed.
In this way new bankruptcy laws have led to a massive debt settlement market. People have had the poor experience of filing insolvency and still having to pay the debt. Not only this, the declaration has cost them low credit ratings. On the other hand going for a debt settlement has proven to be an easier way to eliminate debt.
Those who are expert in negotiation skills and play it right get huge reductions in their accumulated credit card bills. Paying off debt more quickly helps them to gain higher credit scores.The new law has brought some leniencies in the area of food and housing allowances. Higher priority has been attached to the child support debt. Once a person files, then it is required of you to take credit counseling courses with 180 days after filing. In addition, according to the new Bankruptcy law home exemptions are limited to $125,000 nationally under the condition that you should have purchased the home before filing for bankruptcy that too within less than 3 years and 4 months. Going for bankruptcy may eliminate high debt amounts but it leaves a lifelong poor rating. You may not be eligible to get home loan for up to ten years.
How the Debt Settlement Market Has Been Affected by New Bankruptcy Laws
