Credit Card Debt Laws That You Need to Know
With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit...
Paying Off Debt With Debt Consolidation
Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means....


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Maine
Let’s hope you don’t have an above average income and expect to file Chapter 7 bankruptcy in Maine. As of 2005, Congress revamped the bankruptcy laws to account for Americans’ loss of “shame” when it comes to filing and make it not only more difficult to qualify for, but also a far less appealing option. The most important piece of this puzzle was act’s requirement that people who earn more the median income in their state to pass the bankruptcy means test in order to qualify for Chapter 7. The following is median income information for Maine as of 2006:

2-person families 46,378
3-person families 58,225
4-person families 63,501
5-person families 64,680
6-person families 61,070
7-or-more-person families 51,779

The reason why Chapter 13 is so distasteful to most consumers is the fact that it requires you to devote your disposable income to the courts for a period of up to five years, and even though you are essentially paying back the debt, it is still never considered satisfied and thus can affect your credit almost as severely as a Chapter 7.

Bankruptcy Figures For Maine

2004: 4,370
2005: 6,470
2006: 1,238

Maine is a state that has a historically low consumer bankruptcy rate already, but it has dwindled even more so in light of the new bankruptcy laws. Between 2005 and 2006, the number of people declaring bankruptcy in Maine dropped by 5,232 or 80.8 percent. That being said, debt problems do continue to exist in the state. The only difference is debtors have sought out other remedies for debt advice.

More Resources For Maine Consumers

Maine Consumer Credit Counseling Services
Maine Bankruptcy Laws
Maine Debt Collection
 

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