New Bankruptcy Laws

With more and more Americans struggling to satisfy their mortgage payments and credit card bills, many consumers have been forced to turn to governmental assistance for help only to find that the new bankruptcy laws either preclude their effective discharge of unsecured debts or so diminish the assistance of debt re-organization. The new bankruptcy laws have decisively changed both the Chapter 7 and Chapter 13 debt management solutions and diminished their possibilities. Every American borrower concerned with his or her household budget (as well as the larger debt considerations affecting the family) in the face of mounting bills must learn more about what the new bankruptcy laws will mean for the ordinary consumer.

The relatively recent alterations of personal bankruptcy protection should have already raised alarms the moment the United States Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act four years ago. With real estate values exponentially escalating and unemployment nearing historic lows four years ago, most Americans shrugged their shoulders at the new bankruptcy laws since they couldn’t imagine the need for such assistance. Unfortunately, while the financial circumstances of most families around our country have changed, the new bankruptcy laws effected by the 2005 legislation remains in place. After those new bankruptcy laws had their way, many families desperate for federal aid realized that the qualifications for Chapter 7 bankruptcy protection no longer admits just any citizen carrying along unreasonable debt loads.

Under the new bankruptcy laws, borrowers have to have made less than the average income of households within their state over the past year to enter Chapter 7 bankruptcy protection. It’s a ridiculous proposition that does not allow for the varying differences of each family nor the gigantic disparity among the many regions and costs of living boasted by almost every one of the United States of America, and the new bankruptcy laws further prevent the court appointed trustee from properly judging the validity of each claim. For borrowers struggling against reduced earnings and attempting to right misguided debt loads despite a history of significant salaries among the family bread winners, the new bankruptcy laws could prevent their last possible chance to create a fresh break with unwanted debts. So many consumers, particularly those that have been trying their best to deal with medical loans for extended hospitalization or surgical procedures, cannot hope to repay debts that quickly climb to six figures and beyond in a matter of weeks, but the new bankruptcy laws make little allowance for the uninsured.

Presuming they correctly and accurately fill out the paperwork (and afford the administrative fees), borrowers should still be able to gain some reduction of their debts through the Chapter 13 system, but here again, the new bankruptcy laws curtail the effect of governmental protection. The payment schedule drawn up by the court trustee and associated officials must now, according to the new bankruptcy laws, be calculated using figures which depend upon the Internal Revenue Service’s estimation of household expenses state by state. Despite their best efforts, the resulting remuneration scheme proves so unfavorable that many Americans end up leaving the Chapter 13 program well before discharge with few other options for debt relief. Prior to spending the money that such protection requires under the new bankruptcy laws, borrowers should visit one of the debt settlement negotiation offices or web sites and learn more about a new program utilizing creditors’ remaining concerns over government protection. As a part of successful negotiations, settlement brokers cut their clients’ loan balances in half without suffering through any of the injuries to domestic finance the new bankruptcy laws demand.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

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Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor’s phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.