ADVERTISER DISCLOSURE
AcclaimVisa.com is an independent, advertising-supported web site. AcclaimVisa.com is compensated by the credit card issuers whose offers appear on our site. This compensation can impact how and where credit products appear on our site, including, for example, the order in which they may appear within product listings. AcclaimVisa.com does not offer, review or present all available credit offers.

Credit card bankruptcies not viable in the present day

[Friday, December 10th, 2010]

The earlier trick of filing for credit card bankruptcy has lost its sheen with new bankruptcy laws making it less advantageous these days. Bankruptcy is no longer trouble-free as it used to be due to the new American laws. A debtor declares bankruptcy when there is failure on the part of the debtor to pay the creditor the debt. It was a convenient option earlier and even companies who could afford to pay back the debts would declare bankruptcy, but with the new laws in place even the genuine ones will hesitate to opt for it.

Nowadays filing for bankruptcy is an expensive, time consuming procedure. It involves very high fees charged by the solvency companies, large amounts of paperwork as well as the time taken due to lengthy court proceedings. After all this exercise, the credit rating that one gets is bad which means the end of the road when it comes to getting any debt in the future. This not only leads to an unstable status financially but the social image also takes a beating as the debtor is not expected to pay the creditor any money to clear off the debts and this is an unethical business practice.

If a debtor wishes to file for bankruptcy, the debtor is required to qualify (for Chapter 7) and the debtor has to prove that there is no source of income by taking the means test. If the debtor fails to prove that and is still trying to file for bankruptcy then the debtor is expected to go through Chapter 13 which is similar to the other (debt) settlement programs but it does have much more drastic effects on the debtor’s credit rating.

Due to the new laws by the Federal Government bankruptcy has become a very difficult option. Hence more and more people are opting for debt settlements as these are much easier options and convenient too as one can pay at a comfortable pace while the debt amount itself is reduced. This is a better option as it is a legitimate alternative. Consumers can get a waiver of up to 50% on their unsecured debt. This could be done through a settlement agency. Debt settlement is less risky these days due to the new laws passed recently by FTC in the month of July of this year. If the balance is not settled not a single dime needs to be paid.

Copyright © 2006-2017
AcclaimVisa.com.
All Rights Reserved

AcclaimVisa.com is an independent, advertising-supported web site. AcclaimVisa.com is compensated by the credit card issuers whose offers appear on our site. This compensation can impact how and where credit products appear on our site, including, for example, the order in which they may appear within product listings. AcclaimVisa.com does not offer, review or present all available credit offers.

All the credit card information presented without warranty and can change. To confirm the terms and conditions click the "Apply Now!" button and review the current information on a secure credit card terms page. AcclaimVisa.com can be compensated by the credit card issuers when visitors apply for a credit card through this website.

* The acclaimvisa.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. acclaimvisa.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the acclaimvisa.com website are property of their respective owners.

Disclosure: Not an access card.