If you’re in debt, you probably know you’re not alone. In today’s tough economy, millions of consumers owe money, and as a result, there are many different debt options to help them recover. The trick is to find the option that works best for you, and the truth is, there’s no clear winner. While an approach such as debt settlement might work for some, credit counseling might work better for others. It all depends on each one’s particular case.

Filing bankruptcy is another alternative to getting a “fresh start”, but due to the New Bankruptcy Law, going bankrupt has become more complex and expensive than ever before. The new law that went into effect in 2005 added new requirements and regulations that have made the process of filing bankruptcy more complicated.

Less Consumers Will Be Given A “Fresh Start”

According to the new law, consumers with an income higher than the median for their State won’t be allowed to file under Chapter 7 and see most of their debts cancelled. Instead, they’ll need to file under Chapter 13 and commit to a repayment plan. This repayment plan could last up to five years.

More Consumers Will Have To Live With Less

While under the old law the court decided what were basic living expenses in order to calculate a debtor’s disposable income, under the New Bankruptcy Law, the IRS will make this decision for all debtors whose income is higher than the median for their state. Doesn’t seem like a big deal, does it? The problem is that actual living costs are generally higher than the allowed expenses established by the IRS.  This means many debtors will have to live on less money since, for instance, internet, cable, and eating out might not be regarded by the IRS as basic needs.

Consumers Will Need To Spend More Of Their Time and Money

Under the new law, consumers will need to take Credit Counseling and money management classes within the six months before filing. Needless to say, they must pay for these services. Moreover, Bankruptcy Attorney fees are higher than what they used to be. Why? Simple: the new law requires a Lawyer to vouch for the precision of his client’s paperwork. Any inaccuracies could mean he’ll be fined. Thus, there’s more liability involved in each bankruptcy case, and with more liability comes more time devoted to each client and, as a direct consequence, higher fees.

Is Filing Bankruptcy Your Best Option To Getting Out of Debt?

Sometimes it’s just the last resort. Keep in mind there are other debt options to fix your finances. Approaches such as debt settlement and credit counseling have proven to be effective in many cases. However, sometimes a consumer is so deeply in debt bankruptcy truly is the only option he has.

Because every case is different, I advise you to keep researching about your different financial options. If bankruptcy is a path you’re seriously considering taking, contact a Bankruptcy Lawyer to examine your case in detail. Don’t jump into any decision yet. Take the time to analyze your situation and the results of choosing one financial alternative over another.

Technology spoils people’s whims. It tends to cater to every human’s caprices. It feeds on the people’s undying thirst for easy, instant, and convenient. More often than not, it also causes them a lot of trouble financial trouble through credit card debt that is.

Credit Card convenience vs. Credit Card debt

We often see people pull out ‘plastic’ to pay for everything they need. Why not? When all it takes is a quick swipe of the card through a little electronic box and a signature then, everything’s okay. You go home happy, content, and almost worry-free. On the other hand, not every one of these people realize that the convenience of using credit cards can lead to a false feeling of financial security. And this realization will strike them as soon as the bills arrive.

In fact, studies show that credit card debt and personal bankruptcies have increases bank profits to the highest level in the last five years. It only shows that more and more credit card holders were unable to manage their finances that lead to credit card debt. If you are a cardholder and having some credit card debt troubles at this early stage, it now time to think over the possible outcomes of this minor glitch so that a more serious problem with credit card debt would cease to arise.

Credit card gives people the feeling of invincibility. And it also gives them tons of uncertainty about their financial management capability when they encounter problems with their credit card debt. Although it is true that that credit cards solve financial matters especially when it comes to safety and convenience, credit cards also creates hassle especially when the person using it doesn’t know what you he or she’s getting into.

Indeed, paying off credit card debt may take a long time especially if the person has high interest rates. But, it doesn’t mean that you can do nothing about efficient management of credit card debt. When you find yourself overwhelmed with credit card debt, don’t fall into a pit of depression. You can get through it with discipline and a change in spending patterns.

Start eliminating problems with credit card debt by getting tips and techniques on how to pay off your balances easier, how to consolidate of frequently encountered problems, look for free debt consultation agencies that can help you, and try inch by inch to rediscover ways on how you can regain your financial freedom by reducing you credit card debt.

The power to eliminate credit card debt

People who are having problems managing their credit card debt or those who are near in bankruptcy often don’t realize that the power to eliminate their credit card debt troubles totally is in their hands. Today, more and more Americans need credit card debt help badly. The main problem is that these families are having difficult times paying high interest for credit card debt. And instead of lifting the burden of credit card debt, more people are paying much in interest every month than that of the actual expenditure.

There are actually more lawful and moral ways to zero-out thousands of dollars in credit card debts. And if you only take the time to research and know your rights and how bankruptcy laws have changed, you will discover that there are valuable facts to eliminate credit card debt. Actually, the possibility of reducing or eliminating the high interest credit card debt is now more possible when a person takes action to get his or her finances back on track.

Apart from knowing your weapon in terminating credit card debt, it is very important that you develop a sense of control and perseverance first. Since credit card debt elimination process requires organization, clarity, and commitment to your own growth, it is a must that you are ready for the responsibility and to stand free and independent.

For those people who consider having a credit card indispensable but afraid of getting one because of the possibility of credit card debt nightmare, you must remember that credit card can be a powerful tool in managing your finances but there will always be glitches when not used properly. Of course, there are countless reasons why you should and shouldn’t get one depending on your needs. Whether you decide to get one or not, managing finances it still takes a sense of good budgeting, willingness to change spending habits, and the humility to avail low interest consolidation loans when you are already burdened by too much credit card debt.

Technology spoils people’s whims. It tends to cater to every human’s caprices. It feeds on the people’s undying thirst for easy, instant, and convenient. More often than not, it also causes them a lot of trouble financial trouble through credit card debt that is.

Credit Card convenience vs. Credit Card debt

We often see people pull out a plastic to pay for everything they need. Why not? When all it takes is a quick swipe of the card through a little electronic box and a signature then, everything’s okay.

You go home happy, content, and almost worry-free. On the other hand, not every one of these people realize that the convenience of using credit cards can lead to a false feeling of financial security. And this realization will strike them as soon as the bills arrive.

In fact, studies show that credit card debt and personal bankruptcies have increases bank profits to the highest level in the last five years. It only shows that more and more credit card holders were unable to manage their finances that lead to credit card debt.

If you are a cardholder and having some credit card debt troubles at this early stage, its now time to think over the possible outcomes of this minor glitch so that a more serious problem with credit card debt would cease to arise.

Credit card gives people the feeling of invincibility. And it also gives them tons of uncertainty about their financial management capability when they encounter problems with their credit card debt. Although it is true that that credit cards solve financial matters especially when it comes to safety and convenience, credit cards also creates hassle especially when the person using it doesn’t know what you he or she’s getting into.

Indeed, paying off credit card debt may take a long time especially if the person has high interest rates. But, it doesn’t mean that you can do nothing about efficient management of credit card debt.

When you find yourself overwhelmed with credit card debt, don’t fall into a pit of depression. You can get through it with discipline and a change in spending patterns.

Start eliminating problems with credit card debt by getting tips and techniques on how to pay off your balances easier,how to consolidate of frequently encountered problems, look for free debt consultation agencies that can help you, and try’inch by inch to rediscover ways on how you can regain your financial freedom by reducing you credit card debt.

The power to eliminate credit card debt

People who are having problems managing their credit card debt or those who are near in bankruptcy often don’t realize that the power to eliminate their credit card debt troubles totally is in their hands.

Today, more and more Americans need credit card debt help badly. The main problem is that these families are having difficult times paying high interest for credit card debt. And instead of lifting the burden of credit card debt, more people are paying much in interest every month than that of the actual expenditure.

There are actually more lawful and moral ways to zero-out thousands of dollars in credit card debts. And if you only take the time to research and know your rights and how bankruptcy laws have changed, you will discover that there are valuable facts to eliminate credit card debt. Actually, the possibility of reducing or eliminating the high interest credit card debt is now more possible when a person takes action to get his or her finances back on track.

Apart from knowing your weapon in terminating credit card debt, it is very important that you develop a sense of control and perseverance first. Since credit card debt elimination process requires organization, clarity, and commitment to your own growth, it is a must that you are ready for the responsibility and to stand free and independent.

For those people who consider having a credit card indispensable but afraid of getting one because of the possibility of credit card debt nightmare, you must remember that credit card can be a powerful tool in managing your finances but there will always be glitches when not used properly.

Of course, there are countless reasons why you should and shouldn’t get one depending on your needs. Whether you decide to get one or not, managing finances it still takes a sense of good budgeting, willingness to change spending habits, and the humility to avail low interest consolidation loans when you are already burdened by too much credit card debt.

Canceling your credit cards can be a positive boost for your pockets. Many people do not realize the option of canceling credit card accounts and therefore continue to destroy their credit to the point of no return or worse, skip this option and go straight to bankruptcy. Bankruptcy should be the very last option for anyone struggling with debt. You should first try everything imaginable before filing for bankruptcy. If you haven’t already canceled your credit cards then bankruptcy should not be in your thoughts just yet.

In most cases, it can negatively affect your credit rating to cancel a credit card. A percentage of your credit score is based on the history that has been established with your credit accounts. However, there are times when canceling your credit cards can be an effective decision. Use these guidelines to know when you should cancel your credit cards:

Cancel Your Credit Cards with Zero Balance. Canceling a credit card with zero balance has the least effect on your credit score. When you cancel a credit card with a zero balance, it does not affect the portion of your credit score that is determined through your debt to balance ratio. Your credit score may see an impact from the canceling of the credit card, but this can be increased over a period of time.

Cancel Your Credit Cards if you are Unable to Stop Spending. Credit cards with zero balances and increasing credit limits can be tempting to those consumers that are living on a tight budget and have faced debt problems in the past. If you are one of these consumers then canceling the credit card may be your best option, rather than live with the tempting credit line. This is a sure way to avoid future debt and is worth the small drop that may occur in the credit score.

Cancel Your Credit Cards if You Have Multiple Accounts. Canceling your credit card if you have multiple accounts can reduce the risk of identity theft. When you request a copy of your credit report, you may even be surprised at the amount of accounts which are shown open! Some of these accounts may never have been used after being activated, often; if these accounts are not closed then they can remain open for years, thus increasing the risk of identity theft or fraudulent activity.

Cancel Your Credit Cards if You Have Established Negative Credit History. There are some instances that consumers have established negative credit history from their credit card account. If you have missed payments or have had numerous late payments then you may benefit from canceling the credit card. It is important to avoid these behaviors and ensure that positive credit history is created from the first month that the credit card has been opened. Note, canceling your credit card does not free you from the debt, you will still be responsible for paying off the current debt but by canceling your credit card accounts you will not incur any more credit card debt.

Canceling your credit cards can be as easy as contacting the credit card company to request the cancellation. The credit card company may resist your request, but it is important to be direct and not waive the decision to cancel the credit card.

If you intend to open a new loan account in the next year, then the credit card account should remain open. This is an important factor in the credit rating and therefore it is important to take measures to increase and maintain the credit score – rather than closing accounts which may prove negative to the credit score.

A bankruptcy attorney is the expert who focus specially on bankruptcy law and provide help at the time of legal requirement. They can come to the aid of individuals as well as organizations that are facing such proceedings. These lawyers explain the nuances of the law and how these laws work to relieve businesses and individuals from their burden of debt. All such proceedings in the United States are regulated by Title 11 of the United States Bankruptcy code. Details regarding the chapter under which it has to be filed, period of time for which payments can be extended, which bills can be eliminated and which property can be kept are all explained in detail in the code.

The Two Main Types

The types of proceedings followed by bankruptcy attorneys are generally of two types. One is Chapter 7, which involves liquidation. The second type undertakes the rehabilitation of debtors according to reorganization plans advocated by the court and come under the purview of Chapters 9, 11, 12 and 13 of the code. Having lawyers handle these cases assures you of getting accurate legal advice when you file your case. Bankruptcy attorneys are committed to acquiring debt relief for you and also will fight for your rights and property. They defend you against your various creditors and help you to retain your home, vehicles and other assets.

Choosing An Attorney

Always choose an attorney who deals specifically with Chapter 13 bankruptcy. It is not a rule that every lawyer who takes up cases would deal with Chapter 13 only. The expert that you select should have adequate experience in dealing with Chapter 13 cases. Do not choose a person who has never undertaken such cases. Get accurate information about your bankruptcy attorney from the local bar association, to be sure that your case is in safe hands. Do not hire a professional who make impossible promises. Look around for a lawyer who views your situation in a realistic manner and provides practical solutions. The one that you hire should be well versed with the laws regarding Chapter 13. Also make sure that he or she charges you a reasonable fee.

One thing that can be worse than bankruptcy is to have the wrong person handling your case. This is why you need to do adequate research before hiring a bankruptcy attorney, because, after all it is your financial future that is at stake. Do not wait till the last minute to hire and check for appropriate certifications before taking a decision.