The new Bankruptcy Law is what consumers with unmanageable debts have to confront if they choose this option of last resort. Bankruptcy attorneys will advise you that filing has become a lot more daunting since the legislation was pushed through on October 17, 2005. The new law has made it much more difficult for consumers to file for bankruptcy after the new law went into effect. Reportedly, the credit card industry spent millions in lobbying fees and donations to Congressional "re-election" funds to make sure that the legislation would pass. And the legislation is set up in such a way that the wealthy can benefit from several loopholes, such as homesteading and asset protection trusts, which the average consumer of more modest means cannot use to his advantage.
If you’re thinking of homesteading, it will depend on the state where you live and how long you’ve had your house. The exemption for your homestead can vary from $100,000 to unlimited.
Asset protection trusts allow people of means to protect their assets from creditors after filing for bankruptcy. These trusts cost thousands to set up and thousands to maintain. Today, in more than a half dozen states, the assets in these trusts will be exempt from federal bankruptcy law.
Under the new Bankruptcy Law you must first sign up for credit counseling from a qualified credit counseling center within six months before you file. Also, you can’t have your debts finally discharged until you complete additional financial education. You must also pass a means test in case your income excludes you from filing. For instance, if you have a good income you can be made to pay for years.
You may also lose your car if you cannot pay the full amount owed. If you have to pay child support or alimony, this type of debt has now become a first priority. Bankruptcy stays on your credit record for 10 years, which makes it very difficult to obtain any credit during that time and it may interfere with your ability to find a job or buy a home among others.
There is a much better way to go: Call Fast Track.
Fast Track’s Debt Settlement Program works great for consumers in need of a way to settle their debts. We negotiate with your creditors and encourage them to accept a one-time, discounted settlement payment. The Fast Track program provides ethical and dedicated service to help you achieve your goals. That’s our mission.
When we start your plan we establish an affordable monthly payment which is deposited in a settlement account in your name. Once you have the required funds in your settlement account, we will contact your creditors and make settlement offers. We will continue to work with them until all debts in the plan have been settled. FastTrack’s goal is to settle all debts in the plan for 40%-60% of what you owe.
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