Negotiate a Debt Settlement

What are the new rules for filing bankruptcy and does filing eliminate all debt?

Public Comments

1. some of the new laws include having to pass a means test, having to take two classes with a federally approved credit counsellor and having to file your proofs of income with your bankruptcy petition.........there are a whole slew of others. No, some debts like child support owed to the other party and student loans cannot be relieved with filing bankruptcy.
2. The new rule is you have to attempt to resolve or consolidate your debt by contacting a credit counseling agency before you can file for bankruptcy. There are 2 kinds of bankruptcy. Chapter 13 is known as a "strict" bacnkruptcy. The courts give you a trustee (liason between you and the credit card and other companies). The trustee basically puts you on a budget and disperses all the money you earn (including tax returns so if you get a refund you can kiss that goodbye) and divides it up among all the creditors. In this type of bankruptcy, you are required to pay back the debts. This can take years. The easier way to go is to file Chapter 7, which mainly liquidates the bankruptcy. If it's sucessful and discharged, then all your debts that your attorney files in the Schedule F magically go away, but your credit is a complete mess for about the next 7 years... But this process takes only months to complete, a lot less time than Chapter 13. And if you file Chapter 7, you cannot file bankruptcy again for about another 7 years. Good luck.
3. I do not agree with Marie's advice. If you are currently working and have some income, you probably will not qualify for chapter 7 anyway, and you could end up losing your home, auto, or other property. You need to discuss your options with a bankruptcy attorney. Only after examining your situation can any recommendation be made. As for the new rules, you must meat a "means" test to see if you qualify. If it's determined that you make too much money, and your dept ratio is not that high, you will not be allowed to file. The filing fees are a lot higher. You now have to complete budget management course (on your own dime). If you can't afford to consult an attorney then do some research on the net. I'm not sure how much info is available on the new rules yet though. Good luck, I've been there.