Due to increasing rate of interest on the debts, paying back the installments on time has become out of the reach of a person. Credit card debts are making the financial state of many families worse. Last year, economic recession came and affected the common people more than the big companies and the extra rich people. This recession caused companies to reduce their expenses by either firing people or reducing their salaries. Many companies increased prices of their products in order to keep their business running. These circumstances created a flood and most of the families and individuals were affected severely. They were not able to pay the debts of their creditors and as a result, the credit card companies also suffered from extreme financial crises. Many people started filing the petition for bankruptcy. This was a sever blow to the credit card companies.
To handle this situation, U.S’s president, Obama passed a bill regarding the debt relief and bankruptcy laws. There are two types of bankruptcy cases. Chapter 7 of bankruptcy was used by different people as a tool to get rid of the debts. So, the government devised the laws to help out the credit card companies. Chapter 7 of bankruptcy was made almost impossible. Many other amendments in the laws were also made. To help out the credit card holders, creditors are being prohibited from increasing interest rates without telling the customers. They can charge new interest rates on the previous debts. The Company will apply more interest rate first and less interest rate after that.
These changes were really helpful in getting your debts eliminated to almost half. You can hire a company for the settlement services because they know how to use laws to protect your rights and get a good settlement. It you are suffering from the same problem then debt settlement can assist you in this hour of need.
You can get legal documentation of these laws from the official websites of the government. There are many rules that you may not understand so, consulting a legal attorney can lead you towards proper solutions after careful reading of these laws.