Credit Card Debt Bankruptcy - How New Federal Laws Make Bankruptcy Less Attractive For Debt Relief

Online, November 14, 2010 (Newswire.com) - If you are buried in credit card bills and are struggling to make even the minimum payments you might feel as though filing for credit card debt bankruptcy is your best option. Filing for bankruptcy might have been appealing in the past however new federal laws make this option far less attractive. It is important that consumers know all of their options for debt relief and also the severe implications associated with filing bankruptcy.

Filing bankruptcy will hurt your credit score for at least 7 years after your case has been settled. With the average bankruptcy case taking 3 years to resolve, this means you credit is going to be negatively affected for 10 years on average. That's a long time.

Filing for Ch. 7 used to be the easy way out however new federal laws make it much more difficult to qualify for. Ch. 7 is the "fresh start bankruptcy" where almost all your debts are forgiven. The new federal laws make this almost impossible to qualify for now. You are much more likely to qualify for Ch. 13 which means you will still be paying back the majority of the debt, it's just stretched out to a longer payback period.

If you feel like you are on the verge of filing for credit card debt bankruptcy it is important that you understand your alternative debt relief options . If you are struggling to meet you minimum monthly payments then there is only one legitimate alternative to filing bankruptcy. Debt settlement.

Detb Settlement is only intended for consumers and small businesses with at least $10 in unsecured debt that are experiencing a legitimate financial hardship. Credit card companies and other creditors of unsecured debt understand that if you were to file bankruptcy they would likely receive little to none of their money back. Knowing this, if they believe you are a legitimate candidate for bankruptcy they are more than willing to negotiate and settle for a small percentage. 50% of their money back is better than nothing.

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 Netowork which will locate the best performing companies in your area for free. They will also go over all your debt relief options to help determine what option makes the most financial sense for your situation.

Check out the following link to get free debt help from a certified debt relief specialist.

Free Debt Relief Help