Tips Series: Eliminating Credit Card Debt – How to Eliminate Your Credit Card Debt and Avoid Bankruptcy
By Contributor • Feb 9th, 2011 • Category: BankruptcyCheck out our latest article on Avoid Bankruptcy
You lose all your money and your market reputation. Losing money is not that bad because you can earn it again. However, it is impossible to earn a reputation which you have lost. If you are a businessman, your suppliers and customers will not be comfortable to invest their finances even if you walk out of bankruptcy. There are various other ways of eliminating credit card debt. Even if you have an urgent requirement of eliminating credit card debt, bankruptcy is not the right way to do it.
Changes in bankruptcy laws for small businessmen and working people
Have you heard about Chapter 11? If you are a businessman operating with limited resources planning to file for bankruptcy, you need to file an application for chapter 11 as well. According to this new chapter, you cannot get all your liabilities exempted by declaring bankruptcy. You still have to pay a minimum sum to the bank. This is not a standard amount and is decided according to the financial situation of the client.
Along with businessmen, working employees also have to file for chapter 7 and 13 along with their applications for bankruptcy. These laws differ according to the state. Hence, you should look at the average income of your state before you decide to file for bankruptcy.
Avoiding bankruptcy
The best way to avoid bankruptcy is to focus on your expenditures. If you are spending ten thousand dollars a month without a job, you are heading for serious trouble. Bring your expenses to half or even less is possible. You need to interpret your financial condition in right manner. Try to hire a counselor who can study your transactions and help you in eliminating credit card debt.
When the bankruptcy laws had not been modified, a lot of people took undue advantage of this situation and got their liabilities exempted. This resulted in further problems for money granting companies. In the United States, most banks are going through their worst financial phase. They are running after their clients to recover billions of dollars. The increasing rate of bankruptcy does nothing but worsen the situation for eliminating credit card debt.
The United States government took strict notice and brought some big changes in the bankruptcy laws. As a concluding statement, I would say that bankruptcy is never the ideal way for eliminating credit card debt.
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.
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