Personal Bankruptcy Alternatives – How to Avoid Bankruptcy and Eliminate Unsecured Debts

All over the nation the economy is in the worst shape because of the rigorous recession which hit almost every part of the world. The result is very disturbing especially for the common consumers. They lost their jobs and built up huge amounts of unsecured debts. Liabilities kept on increasing and incomes generation kept on decreasing. This was the time where the financial industry reached their top most point of success but this resulted in the huge problem of amplified unsecured debts.

People saw that bankruptcy is the only option to get rid of unsecured debts and many of them filed for it. But when the pressure increased too much on courts, the government changed the bankruptcy law to make it unattractive so that people are dejected form filing for it. The person who would file for insolvency would have to bear huge reduction in his credit scores and he cannot acquire any type of loan for at least ten years.

This does not mean that you can no more eliminate your unsecured debts. There are other ways also through which you can get out from your liabilities and they are much better than filing for bankruptcy. These are just simple ways which you need to get back on track. Liabilities can cause you a lot of tension and in this condition you feel like you can never solve your problem until someone grabs your hand and show you the way. Following are some ways through which you can eliminate your unsecured debt without filing for bankruptcy:

1. If you are watching that your arrears are piling up very fast then you should find ways from where you can save more money. Like you can form a budget and cut down extra expenses so that some money is left which is utilized to pay off the arrears. Purchase things at cheaper prices rather than always going for the brands.

2. Moreover, you can do multiple jobs to generate more revenue to easily pay off the debts. You can work in a restaurant, mow the lawns or even sell the newspapers. You will earn low income but even these small savings will help you a lot.

3. You can even do a garage sale to sell your items which you do not use any longer, this way you can also get money. You can even sell your items on eBay.

There are many other ways like that through which you can get rid of your arrears you just need to do a lot of research and give your commitment to it. Arrears are not a small problem in your life; if they got out of hands your life can be destroyed. So make it your first priority to resolve your arrears to make your life debt free.

Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

Personal Bankruptcy – Bankruptcy Laws Are Not As Beneficial As They Used to Be!

You cannot compare the old bankruptcy laws with the new ones. The loan takers are not getting a lot of advantages with the new bankruptcy laws. The United States government has brought this change after people started to take undue advantage of the personal bankruptcy option. They declared that they did not have any money left even when they had a handsome bank balance. Hence some new chapters were included in personal bankruptcy alternative. Along with bankruptcy, you will also have to file these chapters. These new chapters provide some advantages to the credit card companies.

The reason for changes in the bankruptcy laws

You can’t say that only loan takers are in a vulnerable position because credit card companies are closing down at a fast rate. They cannot force their customers to pay them. However, a year back the situation was very different. Loan takers did not an option to argue with their credit card companies. What would have happened if you had not paid your monthly installment? The following points would have been used by the credit card firm to claim the money from you.

1. A series of reminders would have been sent to you in the form of emails and telephone calls

2. The collection agencies would have dealt with you personally

The new bankruptcy laws are very different from the old ones. They are very severe and provide some new rights to the credit card companies. For instance, let’s talk about chapter 13. According to this chapter, the bank has the right to sell your belongings and properties to get its money. Hence, you need to pay a minimum sum under all conditions. This money has to be paid even if you are bankrupt. If you don’t then the bank has the right to liquidate your assets. Personal bankruptcy is not that favorable for loan takers now. In other words, it is a neutral option now.

It is better to ignore personal bankruptcy and go for debt settlement. You can get your liabilities reduced and pay the left over amount in a comfortable manner. You can bargain about the time period and the amount which you would be paying every month. In addition to that, you have the option to select a firm of your own choice. It is always advisable that the status of a relief firm should be confirmed to avoid scams and personal bankruptcy.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below: