Reformed Bankruptcy?

Bankruptcy is a sticky situation whenever you have to file, but new laws are about to make it even stickier. The new law has taken the old Federal Bankruptcy Code and reorganized it in a way to make it tougher for people to declare bankruptcy. Consumers must get credit counseling to try and solve the crisis before they declare, and once they declare there are now limits on how often you can declare. Also, under Chapter 7, you must turn over pretty much all of your assets, obviously not the exempt ones, to try and pay off the debt as well, instead of walking away scott-free as you used to. A judge can also decide that some of your debt can be paid back, at which point you must do so with in five years.

Attorneys are now required to do more research into your finances so that they do not pay the price for sending someone who should not have been able to file. This will end up making filing time longer, as well as making it more expensive. The more hours it takes for an attorney to build your case, the more money you will pay them. Of course, once all is said and done, those parents who are owed child support will get their money, before everyone else, so this is a positive for those who are in need of back payments.  ■