Philadelphia, PA (PRWEB) May 8, 2007

With bankruptcy costs skyrocketing, consumers everywhere are seeking information and education on how to get out of credit card debt and rebuild their credit.

Changes made to bankruptcy laws in 2005 have pushed the costs for filing up 90 percent, as part of a law passed to try and stem bankruptcy abuse and fraud. Because of that, filings plummeted 75 percent in 2006. The increasing cost of filing bankruptcy will make it more difficult to use as a means of getting out of debt.

Consumers struggling with credit card debt also have the fear of bill collectors looming over their heads. They will harass not only the consumer, but also attorneys and banks to get the consumer’s accounts frozen. Unsure of any other options to get away from the bill collectors, people file for bankruptcy. However, many of them do not actually need to.

“Nine out of ten people file bankruptcy for the wrong reasons, because they’re getting harassed by bill collectors,” said Pearl Polto, author of “Credit Lifeline” and credit expert who has been in the business for more than 28 years. “The bill collectors scare them into it, and they get away with it because people don’t know the laws.”

And that includes attorneys, according to Polto. Many attorneys push their clients to bankruptcy as an option because they don’t know any better. Corrupt counseling services also abound, overcharging people for the cost of helping them fix their credit card debt. With such a shady financial situation, consumers should make every effort to educate themselves on credit information.

“Everything can be removed from your credit except the word ‘bankruptcy,'” Polto said. “Bankruptcy will stay on a person’s credit report for seven to 10 years, whereas charges can be removed in 30 days at the earliest.”

There are other possibilities for people looking to rebuild their credit and get out of debt. One way to get bill collectors to stop harassment is to send a cease communications letter. If collectors continue to hassle the consumer after the letter has been sent, they can be sued.

Credit and bankruptcy information are key for consumers. The Fair Credit Reporting Act is available online and has information consumers can use about debt and options for recovering from it. Consumers can also learn more about bankruptcy, avoiding it and protecting their credit by visiting


The Ultimate Credit University, developed by Pearl Polto, is a series of courses aimed at helping consumers understand credit and what they can do. Polto is a nationally known author, talk show host and credit expert. She has been a featured guest on television programs from the East Coast to the West Coast. She has her own TV and radio shows, and has appeared on CNN and Fox Networks. As a consumer advocate for more than 28 years, Polto thinks credit education can make an impact not only in people’s lives, but in the economy at large.

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