The debtor and a creditors’ committee cannot enforce a provision of a plan that would impair the bankruptcy court’s jurisdiction to decide whether a case is to be dismissed with prejudice or converted.
For many years, consumer lenders have had little choice but to pay off delinquent consumer debt at face value. That era is over. The Credit CARD Act that was passed by the U.S. Congress in 2009 requires consumer credit card companies to charge no more than 18% interest for seven years to the companies that fail to pay in full by a certain date. There are exceptions.
A number of credit cards from the same company are subject to the law. Companies can also exempt their own employees from the law. The law went into effect on January 2, 2010 and the cards issued to individuals before that date are not subject to the Act. If your card was issued before January 2, 2010 and you made a late payment on it before January 2, 2010, you’re still subject to the law and may not be allowed to make future payments at any interest rate higher than 18%.
Another problem facing credit card companies is the ever-increasing volume of accounts that are delinquent. According to a report by the credit card industry, the number of accounts with a delinquency of 90 or more days increased by 4.7% from August to September 2010 compared to August 2009.
This means that you’ll have a hard time finding a card issuer that is willing to reduce the balance on your delinquent accounts. Some issuers, though, will negotiate a lower interest rate and lower monthly payment if you are willing to make a down payment on a new credit card.
Another benefit of credit card reform is that it creates an opportunity to help consumers who have lost their jobs and are having trouble making payments on their credit cards. The credit card companies will generally offer some payment assistance to these consumers. Credit card companies can also offer consumers a chance to improve their credit ratings by paying off the delinquency on their accounts.
In order to qualify for these assistance programs, your credit card account must be at least one year delinquent. Your card account must be charged off or put for a charge off. If your card is no longer active and you have no other accounts with the card company, your card account may qualify for this benefit.
For more details about how the IRS debt settlement might help you with your own case, call(888)489-4889 for a free consultation.