New Laws for Bankruptcy

On the face of it, the changes to the law relating to bankruptcy are not consumer friendly. It has become very difficult for an average individual to make use of this debt relief option to overcome a financial crisis.

Considering the fact that the current recession is the worst one to hit the economy for the past seventy years, there is no doubt that the current amendments to the bankruptcy law have created more trouble for the average borrower. However, there is a general consensus that the changes, although negative, actually laid to a positive impact on the finances of individuals.

Post 2005, the current recession was the first one to hit the economy. It was the right time to find out whether the changes to the bankruptcy laws had made life better or worse. The fact that the average borrower could not file for bankruptcy again and again meant that the borrowers as well as the creditors try to identify and locate newer debt relief options.

Had chapter seven bankruptcy filing procedure been very simple, nobody would have taken the time and effort to find out more about debt settlement. The credit card issuers too would have been left stymied because the credit card holder would simply go in for bankruptcy again and again.

A poor negative score really, if ever, detracts or discourages individuals from going in for bankruptcy. Currently, the situation is completely different. Because of the amendment, filing for bankruptcy has become more expensive, time consuming, procedural and unprofitable. This has contributed, in no small measure, to the rising popularity of debt settlement.

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