Debt Settlement

The New Bankruptcy Law – How Will It Affect Debt Settlement?

Effective Oct 17, 2005 new bankruptcy laws went into effect making it tougher to file bankruptcy, what it basically means is a lot of grief and problems for Americans already drowning in a sea of debt.

How will the new Bankruptcy Laws affect Debt settlement? Consumers wonder, how willing will creditors be to negotiate any kind of a deal to settle debt now? Are they still going to be accepting the lump sum offers that they were once willing to negotiate with their customers?

Of course they will, the credit card banks had millions of dollars at their disposal that they lobbied with to attempt to get the new law passed. Why not, it was going to benefit them. They felt that bankruptcy was an easy way out and it was being abused by the upper class to get out of paying back their debt. Even though research can prove this not to be the case and the facts speak for themselves. From 1995-2004, while bankruptcy cases doubled, credit card profits tripled. Credit card companies target individuals that they know cannot afford to repay the loans, thus adding to the bankruptcy figures. More than half of the bankruptcies filed are because of medical bills that have piled up due to lack of insurance or loss wages. The income range for people filing is somewhere around $25,000.00. This does not point to the upper class trying to take the easy way out of their debt. Divorced woman, Hispanic and African American couples have the highest percentages of bankruptcies filed a year.

In a nutshell, this new law will profit the credit card companies more than anyone else; it will be business as always for them. Collections will continue, people who cannot afford to pay will continue to try and juggle one bill to pay another; inevitably getting into more debt trying to get out of debt. Hard working honest people will continue to be hit the hardest by both the new bankruptcy law that at once gave them some relief when they had reached the end of their rope, and the credit card companies also. Credit Card companies will still try to bully and force people into paying up, sometimes in a very rude manner, but when all is said and done, they are still going to make a deal. best pokies online

Laws & Other Articles