Drug testing

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law by President Bush last April, promises changes to Federal bankruptcy law that have been long sought by the lending industry. The bill promises sweeping changes to Federal law, and will make it much harder for the average consumer in financial trouble to have their debts wiped out by filing for bankruptcy. Recent trends suggest that those considering a bankruptcy filing should do so now, as the line to do so is already getting rather long.

The bill will make it harder for the average consumer to file under Chapter 7 of the Federal code, which allows the courts to wipe away consumer debt and give the debtor a fresh start. Filings after the October 15 deadline will be subject to a means test and those that pass a rather generous income gauge will have to file under the more strenuous Chapter 13, which requires a repayment plan and the assistance of an attorney. Indications are that with the deadline looming, bankruptcy filings are not only higher than they were last year, but they are also higher than anticipated. Nationwide, filings are 20-25% higher than last year, and some bankruptcy attorneys say that their business has nearly doubled.

Complicating matters is another law, passed in 2003, that requires credit card companies to establish a payment schedule that allows consumers to repay their debts in a "reasonable" amount of time. Since the beginning of this year, the major credit card companies have doubled their minimum payments from 2% of the balance to 4% of the balance. For the average household with $10,000 in credit card debt, this doubles the minimum monthly payment from $200 to $400, an increase that many consumers cannot afford.

The dramatic increase in bankruptcy filings has overwhelmed bankruptcy attorneys, who will face the additional burden of being liable for false information filed by their clients once the new law takes effect. This additional pending liability, combined with the additional workload, has prompted many attorneys to raise their fees by an average of nearly 20% over the same time last year.

What does this mean for those with problem debt? The deadline for filing under existing law remains October 14, 2005. After that, bankruptcy filings will be more complicated and expensive. The courts and law offices are already becoming clogged with bankruptcy cases. Anyone who may be considering filing for bankruptcy to overcome his or her problem debt should do so now. Waiting even another day could be too late.

?Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity lending.

limousine chicago service
In The News:

Personal Bankruptcy: Last Option To Legally Stop Bill Collectors

Do you have stacks of unpaid bills?Are you in debt?Are... Read More

Debt Validation: Do you have to pay ?

It happens all the time. Debt collectors try to collect... Read More

How to Reduce Your Debt in 5 Easy Steps

If you have incurred substantial personal debt, consider these options:... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law... Read More

How To Pay Credit Card Debt Off

If you are determined to pay credit card debt off... Read More

What Is A FICO Score?

Your FICO score or credit score as it's commonly called... Read More

Bankruptcy - The New Scarlet Letter

Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2,... Read More

Is Filing for Bankruptcy an Option for You?

Bankruptcy laws give debtors a way to resolve debt by... Read More

How To Avoid Medical Collections

With medical collections costing doctors millions upon millions of dollars... Read More

Senate Passes New Bankruptcy Law

The United States Senate passed a law on March 10,... Read More

Taking The Plunge Into Bankruptcy

Bankruptcy is one of the most difficult things a person... Read More

How to Get Triple A Credit in 25 Days

Good credit is everyone's dream. A wise use of credit... Read More

Worried About Debts?

Having trouble paying your bills? Getting dunning notices from creditors?... Read More

Top Ten Reasons People File for Bankruptcy

1. Eliminate the legal obligation to pay many of your... Read More

How Do You Spell Debt Relief?

Of all the problems possible in a marriage, finances cause... Read More

Debt Management Systems

What is a debt management system, and when do you... Read More

Debt Free and Carefree

Are you still clearing a mountain of debt amassed last... Read More

Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!"... Read More

How Do I Lower My Debt Burdens?

How do I lower my debts?There are several ways of... Read More

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and... Read More

Establish Money Saving Goals For Added Success

Having something tangible to strive towards can work wonders for... Read More

Is Debt Negotiation Bad?

Educating yourself about the ins and outs of debt negotiation... Read More

Turning Bad Debts into Good Debts through Investing Fundamentals

If you've ever earned enough money to put some aside,... Read More

Credit Counseling or Bankruptcy: Which is Best for You?

People often get to a place where they simply can't... Read More

Debt Relief with this Simple Formula

Is there a way to get out of debt without... Read More

philips induction lighting led lights manufacturers Pete's produce ..