Most Americans are aware of the sweeping changes in U.S. bankruptcy law that were made by Congress recently. These changes, strongly supported by the credit card industry, were designed to make it more difficult for Americans to file for bankruptcy under Chapter 7 of the Federal bankruptcy code. Chapter 7 allows consumers to essentially have all of their debts wiped away by the court. While many people will still be able to file under Chapter 7, many more will have to file under Chapter 13, which requires the establishment of a repayment plan. A less publicized provision of the bankruptcy bill is the one that requires debtors who are considering filing for bankruptcy to first undergo credit counseling. What does this mean for consumers?
Actually, the details are not yet known. The law, which takes effect on October 17, 2005, does require that debtors considering bankruptcy receive credit counseling at least six months before filing for bankruptcy. The law also requires that they receive additional counseling before the case is finalized and that any agency providing counseling services must charge an undefined “reasonable fee.” Other than that, there are no details yet. The portion of the law that deals specifically with credit counseling hasn’t yet been written, and the full details are not expected to be released until mid-summer. Even those who work in the credit counseling industry do not know what will be expected of them once the law takes effect.
For consumers with problem debt, this confusion is only making a bad situation worse. In the Fall, more steps will be required of those filing for bankruptcy, but no one knows what those steps are, what they will cost, or how involved they will be. Anyone who has a current financial situation that they feel may lead to bankruptcy would be well advised to consider filing now. Bankruptcy should be considered a last resort for those with problem debt, as a bankruptcy filing will stay on a credit report for at least ten years. If bankruptcy appears inevitable, however, filing now will probably be easier, cheaperFind Article, and faster than filing after the new law takes effect in October.
ABOUT THE AUTHOR
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and http://www.StructuredSettlementHelp.com, a site devoted to information regarding structured settlements.
Wednesday, May 9, 2007
Credit Card Bankruptcy
Writing this article for you was a pleasure, I desire it be likewise for your to read it.
As people use credit cards to make payments for items that they are buying, sometimes they overuse their credit card. This will not become a problem if the person has a way of paying off their debt. There are instances where credit card bankruptcy will have to be declared.
This bankruptcy claim can be disputed by the name card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the name card company feels that you are Using the card in an outlaw(a) fashion they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-discharge ability action. In the non-discharge ability activity the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also hold that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you register for bankruptcyFree Reprint Articles, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or perhaps large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least Six months before you file for credit card bankruptcy. The less use that can be found with your credit cards will validate your claims that you are in fiscal difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your attorney about your integral financial problems and see the assorted courses that you have open.
You must realise that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This substance that you will need to uprise to various businesses that you are conformable to pay the higher credit rates that you can be charged.
While this course of activity may seem difficult to reflect sometimes it is the only way that you can find a Breathing space to reorganize your financial affairs. Once you have proven that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
I’am glad you have found this article I hope you found the data useful.
ABOUT THE AUTHOR
Michael Malega presents several credit card bankruptcy articles for your information. You can visit Michael's web site at: http://www.bankruptcy-chapter-13-facts.com/Credit-Card-Bankruptcy.php
As people use credit cards to make payments for items that they are buying, sometimes they overuse their credit card. This will not become a problem if the person has a way of paying off their debt. There are instances where credit card bankruptcy will have to be declared.
This bankruptcy claim can be disputed by the name card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the name card company feels that you are Using the card in an outlaw(a) fashion they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-discharge ability action. In the non-discharge ability activity the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also hold that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you register for bankruptcyFree Reprint Articles, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or perhaps large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least Six months before you file for credit card bankruptcy. The less use that can be found with your credit cards will validate your claims that you are in fiscal difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your attorney about your integral financial problems and see the assorted courses that you have open.
You must realise that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This substance that you will need to uprise to various businesses that you are conformable to pay the higher credit rates that you can be charged.
While this course of activity may seem difficult to reflect sometimes it is the only way that you can find a Breathing space to reorganize your financial affairs. Once you have proven that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
I’am glad you have found this article I hope you found the data useful.
ABOUT THE AUTHOR
Michael Malega presents several credit card bankruptcy articles for your information. You can visit Michael's web site at: http://www.bankruptcy-chapter-13-facts.com/Credit-Card-Bankruptcy.php
You Don't Have To Declare Bankruptcy To Deal With Your Debts
Considering filing bankruptcy? If your finances are in ruins and you're considering filing bankruptcy, there's a few things you should know.
Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.
There are several alternatives to bankruptcy depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you.
They will negotiate payment options with your creditors and simply provide you with the alternative to make one easy monthly payment to them and they will disburse the payment among your creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact from creditors
* You will be able to keep your credit at satisfactory standards versus the harsh impact a bankruptcy would have on it
* You're able to obtain new credit
* And with the money you save with the advantage of a lower monthly payment plan you can contribute to a Savings Account or Retirement Account
The above benefits are just a few of the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan or Debt
Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period. The benefits include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory accounts and collections
* Low percentage rate
However, in order to obtain a Personal Loan or Debt Consolidation Loan you will need satisfactory credit. Though there are alternative to filing bankruptcy; in some cases, bankruptcy is the only option.
Before deciding whether to file bankruptcy or consolidateFeature Articles, consult a financial advisor. He or she should be able to give you advice after evaluating your situation and current credit standings.
Discover the debt consolidation alternatives to Bankruptcy. Find out useful advice and information. Click http://www.debtconsolidation-easy.com
ABOUT THE AUTHOR
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include my resource box as listed above.
Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.
There are several alternatives to bankruptcy depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you.
They will negotiate payment options with your creditors and simply provide you with the alternative to make one easy monthly payment to them and they will disburse the payment among your creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact from creditors
* You will be able to keep your credit at satisfactory standards versus the harsh impact a bankruptcy would have on it
* You're able to obtain new credit
* And with the money you save with the advantage of a lower monthly payment plan you can contribute to a Savings Account or Retirement Account
The above benefits are just a few of the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan or Debt
Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period. The benefits include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory accounts and collections
* Low percentage rate
However, in order to obtain a Personal Loan or Debt Consolidation Loan you will need satisfactory credit. Though there are alternative to filing bankruptcy; in some cases, bankruptcy is the only option.
Before deciding whether to file bankruptcy or consolidateFeature Articles, consult a financial advisor. He or she should be able to give you advice after evaluating your situation and current credit standings.
Discover the debt consolidation alternatives to Bankruptcy. Find out useful advice and information. Click http://www.debtconsolidation-easy.com
ABOUT THE AUTHOR
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include my resource box as listed above.
Subscribe to:
Posts (Atom)