What is the “new bankruptcy law” I’ve heard about?

In 2005, Congress made a number of revisions to the Bankruptcy Code. These changes—largely the result of lobbying by banks, credit card companies, and other creditors—were intended to reduce the number of bankruptcy filings and encourage debtors who would otherwise file under Chapter 7 to repay some of their debt in Chapter 13 instead. The good news is that the bark is worse than the bite. Most people who were able to file for Chapter 7 bankruptcy before 2005 will still be able to do so. From the debtor’s perspective, the primary effect of these changes is requiring you to jump through a few more hoops in order to have a successful bankruptcy. For example, before you file, you will have to participate in a credit counseling session, and before you obtain your discharge, you will have to take a financial education class. (Both of these can be done via Internet or telephone from the privacy of your home.) The attorneys of GCH are thoroughly familiar with the current bankruptcy ...  more