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Hi All,
I am too much in debt and tired of phone calls from the collection agencies. They also call my parents at odd hours. I am unemployed and can't find any ways to get out of debt. My friends suggested a repayment plan but i cannot afford it . I am planing to file for bankruptcy. Has anyone heard about new bankruptcy laws? I have also heard that these new bankruptcy laws will make filing for bankruptcy very difficult.
Hi jonathan,
Filing for bankruptcy under Ch 7, can be a bit difficult now because of the new bankruptcy rules. Filing for bankruptcy under Ch 7 involves selling off your property and assets, to pay down the debt (also known as liquidation). You will know whether you are eligible for Ch 7, by going through a "means test". The "means test" result is statistically determined. That is if your current monthly salary is less than or equal to, the average income of a family (of the same size as yours) in your state, you are eligible for bankruptcy under Ch 7.
Under the new laws, you are also required to take credit counseling, before filing for bankruptcy (for both Ch 7 and Ch 13) with any agency approved by US Trustee's Office. The credit counselor will review your debts and see if there are any chances to get out of the debt, without filing for bankruptcy.