Know your Rights
The New Bankruptcy Law and You
Are you a consumer who finds yourself overwhelmed by debt? You can still file for
bankruptcy protection if you qualify. It is your right. Major protections are
in place to preserve the rights of creditors and collectors. Bankruptcy law is still there
to protect you if you need it. Why let anyone talk you out of exercising your rights or
make you feel guilty about your situation?
What is the new bankruptcy law?
You may have read that the bankruptcy law has changed, effective October 17, 2005.
The changes represent the most sweeping overhaul of the Bankruptcy Code since 1978.
There are numerous changes, too many to summarize in a few paragraphs. The important
point to keep in mind is that you can still file if you qualify. Credit card bills
keep coming in. In the majority of cases consumers can still keep their cars, keep
their homes, and obtain a fresh start.
Call us to set up a free first consultation to learn more: (717) 600-2900.
If I am considering bankruptcy relief, am I alone?
Considering that roughly 2 million bankruptcy cases were filed in the United States in
2005, you are not alone. Financial crises happen. Anyone can lose a job, get sick, or find
themselves saddled with debt.
Should I feel guilty about considering bankruptcy?
Consider some of
the reasons why bankruptcy rates been rising in the U.S. for the last two decades. Some
academics believe that a 1978 Supreme Court decision that allowed credit card companies to
charges rates of interest allowed in their state of incorporation has something to do with
it. Many companies seem to have incorporated in states where high interest rates are
allowed. Being able to charge higher rates may mean that card issuers can afford to issue
cards to those with a limited ability to repay. The process has also become less personal.
Not only do many credit card offers come as junk mail, but issuers themselves may not
police their own loans. These factors have likely contributed to the rise in bankruptcy