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.

---

How to Become Debt Free

In today's consumer society it is all too easy to... Read More

Utah, the Nation?s Bankruptcy Capital

Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection... Read More

New Bankruptcy Legislation May Make it Harder to Find an Attorney

The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More

Ten Ways to Get Out of Debt

1) Use your AssetsIf you have assets with some significant... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

Get Debt Free

If you once have been caught in the debt trap,... Read More

Help to Get Out of Debt

Debt Help is the stepping stone to debt elimination and... Read More

Can You Escape the Trap of Ever Growing Debt?

It's difficult not to be concerned when facing numbers like... Read More

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40%... Read More

What is Debt Settlement?

Debt settlement is the process of negotiating with your creditors... Read More

Debt Free Living - 5 Tips To Get Out Of Debt

A few times I wonder what sort of credit system... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

Debt Recovery Can be Easy

OK, so you are up to your head in debt.... Read More

Two Ways To Debt Relief

There are many debt relief programs out there both off... Read More

The Credit Card Debt Termination Scam

"Legally terminate credit card debt! You can be debt-free in... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

The 5 Secrets to Getting Out of Debt Fast

As they stare down at a teetering pile of bills,... Read More

A Debt Elimination Process Must Be Initiated From You.

The first and maybe most important step in a debt... Read More

How to Get Triple A Credit in 25 Days

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

Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors

Do you, like millions of other Americans, feel like you're... Read More

Bankruptcy: What the New Law Means to You

On April 20 of this year, President Bush signed a... Read More

What Is A Chapter 13 Bankruptcy?

Many consumers that are bogged down in debt frequently turn... Read More

Bankruptcy: Who is to Blame?

If you are considering bankruptcy as a solution to your... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

The Debt Free Lifestyle

Many people have been taught that you cannot get ahead... Read More

Debt Consolidation and Personal Finances: Learn the Truth!

An inability to manage credit, growing debt and bankruptcy are... Read More

Debt Relief -- Why Most Programs Have A 75% Failure Rate

Debt consolidation, equity loans, credit counseling, debt management plans, even... Read More

Bankruptcy: Which Chapter Do I File?

There is more than one kind of bankruptcy. You should... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

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

What Does A Bankruptcy Trustee Do?

Once you file bankruptcy a court appointed bankruptcy trustee will... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through... Read More

Bankruptcy - Is It The Right Choice For You?

Bankruptcy is one of the tougher choices we as adults... Read More