Changing Bankruptcy Laws
New changes in the bankruptcy laws can make it more difficult for some to file for chapter 7 and 13. There are some income requirements, limits and changes that can make it more difficult. Under chapter 13 some will now have to repay a portion of their debt. Many debtors will now have to file for more protection under chapter 13.
Many will also have to participate in a new kind of credit counseling prior to filing for bankruptcy. These courses are designed to help individuals to not make similar mistakes in the future, also helping people to understand what kind of smart choices to make in the future. There are also stricter and more complex laws for lawyers in some situations.
Under the older laws, you could choose a kind of bankruptcy that was relevant to your situation exactly. Either chapter 7 or 13. Now there are some laws that require you to stay in either repayment or liquidation. These are again based at least in part on your income level. Speak with a bankruptcy expert to understand legally which area of the law you would fall under.
But this is not to discourage you from using bankruptcy as a way to manage your unsustainable debt levels. If you are considering either chapter 7 or 13, do consult with a layer that works in the bankruptcy area to help you find a solution that fits your needs.
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