Credit card issuers fought hard – and spent a lot of money – to get congress to change consumer bankruptcy laws back in 2005, effectively making it much harder to declare bankruptcy. The legislation has not had the desired effect.
As the economy continues to stumble, the extra roadblocks to bankruptcy protection are not stopping people from filing for a fresh start when they need one. Industry observers expect major card issuers to see their charge off rates (essentially the debts the issuer has written off as noncollectable) continue to increase.
The nation’s largest credit card issuer, JP Morgan Chase, expects its charge off rate to increase by a huge 44% in the last quarter of 2010. Capital One and Discover are also expecting charge off rates to increase over last year.
So did changing the law actually help the credit card companies? Certainly no one could have predicted the financial meltdown of 2008, so it would be hard to say. It is encouraging that the legislation has not significantly deterred the average Arizonan from filing for their legal right to bankruptcy protection under the law.
At The Zolman Law, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.