To eliminate high levels of credit card debt without bankruptcy is for many people, with the help of debt management advice, an achievable goal.

Bankruptcy has become an increasingly accepted method of getting out of debt and for some it is the only way to overcome large amounts of personal debt and return to a less stressful way of life.

However a declaration of bankruptcy has a huge effect on a person’s life, including the loss of their home (not if rented) and other high value assets. Bankruptcy, even when discharged, will also have a detrimental effect on future credit applications.

Can credit card debt be eliminated without bankruptcy? T

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Need to find simple strategies for rebuilding credit after bankruptcy or debt settlement? Read on to get help for bad credit caused by unpaid credit cards.

Negative items remain on a credit report for years, bringing down the consumer’s credit score. A bankruptcy, for example, can stay on the credit report for up to 10 years. After filing for bankruptcy, or a debt settlement program, the consumer’s credit score can be severely damaged. Most strategies for rebuilding credit after bankruptcy are simple, and easily implemented, while others must be maintained over the course of years to help the bad credit score that results from unpaid credit card bills.

Fix a Credit Score by Applying for New Credit

In order to fix a poor credit score, consumers must build a new credit history so that the most recent information available is positive.

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So what’s new in the exciting world of insolvency legislation? A whole lot, apparently. Last week the Attorney General, Robert McClelland released the Bankruptcy Ammendment Bill 2009. The bill proposes that a number of changes be made to the current laws surrounding bankruptcy. In an official press release, Mr. McClelland noted that the majority of bankruptcies related to consumer debts, and typically involved people with limited income and few assets. Supposedly, the new legislation is designed to make life a little easier for this segment of the population. A summary of the proposed changes is provided below:

 
• Debtors cannot be forced into bankruptcy over debts of $10,000 or less. Pr

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If it doesn`t look like you`ll ever be able to repay your debts in full, you may think that the best way to clear your debts is bankruptcy. In some cases, this may be true – but bankruptcy is by no means the only option for people with serious debt problems.

One alternative to bankruptcy is an IVA (Individual Voluntary Arrangement). Many people consider IVAs to be preferable to bankruptcy, although this isn`t the case for everyone.

What`s involved in an IVA?

An IVA is a formal and legally-binding arrangement with your unsecured lenders that may be available to you if you have no realistic way of repaying your debts within a reasonable period of time.

It involves repaying a set percentage of your unsecured debt (i.e.

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For many people faced with unmanageable debt problems, it can seem like the only option is bankruptcy – and despite what some see as the `stigma` surrounding bankruptcy, it can be the right option for some people.

However, there may be another option: an IVA (Individual Voluntary Arrangement).

What is an IVA?

An IVA is a legally-binding arrangement with your lenders. It can enable you to avoid bankruptcy by agreeing to repay a percentage of your unsecured debts, and write off the remaining amount.

This will usually take place in the form of regular monthly payments towards your debts, over a period of five years (although timescales can vary depending on what is agreed with your lenders).

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