To get free from these kinds of liabilities, borrowers used to file for bankruptcy which is a legal process to get free from debts and engages court which helps debtors to discharge their liabilities and re-build their lives.
But at that time the bankruptcy filings increased so much that it became difficult for the courts to handle any more cases.
The whole economy was going down as there were no improvements.
Both the lenders and the consumers were facing losses.
So the government changed the laws of bankruptcy which became very consumer unfriendly so that borrowers are discouraged to go for insolvency and come up with other methods to resolve their credit card arrears.
The other methods were debt consolidation loan, debt settlement program etc which were much less complicated and beneficial as compare to insolvency.
Through bankruptcy you can destroy your credit reports.
It gives a very awful impact on the credit scores.
They go down really low and this is shown in your credit history.
This will make your future dull.
On the other hand if you try out the other debt relief options then your credit scores will be safe and sound.
By attempting bankruptcy, you cannot acquire any type of loan in your future for at least ten years.
This means that you will have to start your life from the beginning, which is very difficult for people.
The limitations are just indigestible for them.
But with other relief options there is no such condition, in fact you become more cautious how to lead a debt free life and handle everything carefully.
Due to these reasons people are dropping the idea of bankruptcy and keeping it as a last resort.
They are first opting for the other debt relief options to get free from their liabilities so that they can have as minimum damage as possible.
There are a lot of people who have become successful in eliminating their debts this way, so you should also try.
Keep that in mind that these debt relief options are not going to stay forever.
As soon as things will heal they will vanish away.
So get free from those credit card arrears before it is too late and you miss this opportunity.