U.S. New Bankrupcy Laws

You might have heard that bankrupcy liquidation soon will not be allowed. This is in fact true.

Chapter7 bankrupcy, which is total dismissal of all your debts (as opposed to Chapter13 which is devising a reduced amount payment plan) has gotten more difficult to file, but it is not gone. Basically, you will only be able to get rid of all your debts if you are living well under the average income for the state you are living in and have less than $100 of disposable income per month.

Some of the recent changes to the U.S. bankrupcy laws are:

- Mandatory credit counseling in most cases
- Stricter requirements to declare chapter7 (liquidation). If your income is above a certain amount, you cannot declare chapter7 but must instead file under the repayment plan laws, which is chapter13.
- Fewer automatic stays (in the areas of eviction, child support actions, and certain other situation).