The new bankruptcy laws work hard to make sure that people understand this concept. By requiring counseling, when you file bankruptcy you will get help to learn how to get back on track financially and stay away form problems in the future.

1. New Bankruptcy Laws - New Challenges
Most people have heard about the new bankruptcy laws. These new laws really
changed a lot of things about filing bankruptcy. Making bankruptcy something
that is more strict and less available.
The whole idea of the new bankruptcy laws was to limit bankruptcy filings and
help to protect both the creditor and debtor. Filing bankruptcy is not an easy
solution nor is it something that a person should do just because they do not
want to repay debts. With that in mind the new bankruptcy laws changed the face
of bankruptcy for everyone.
The new laws help to ensure people can not rush into filing bankruptcy. Now filing
bankruptcy also includes getting educated which is aimed at helping to prevent
filing again in the future. Additionally, some income groups are not able to file
Chapter 7 bankruptcy anymore.
Thing to Consider About Filing:
Filing bankruptcy is not an ending to financial problems. When you file bankruptcy
due to severe financial problems then you will still have those problems even
after you file. All bankruptcy can do is help you get debts under control. It will not
solve your financial problems.
The new bankruptcy laws work hard to make sure that people understand this
concept. By requiring counseling, when you file bankruptcy you will get help to
learn how to get back on track financially and stay away form problems in the
future.
Bankruptcy is hard on you and creditors. Your credit will suffer due to filing.
Creditors lose money over bankruptcy. That is why new laws limit who can file

2. Chapter 7 bankruptcies which wipe away debt and instead enforce filing of
Chapter 11 where debts are repaid.
Income Limits:
The new bankruptcy laws require a means test which will determine the income
of the filer. If the income level is deemed high enough a person will have to file
Chapter 11 and repay debts. Lower income filers will still be able to file Chapter 7.
The means test weighs a variety of factors to determine if a person can afford to
repay debts under a court sanctioned repayment process.
Counseling Requirements:
The counseling requirements of the new bankruptcy laws are in place to help
ensure that everyone filing bankruptcy understands the process and understands
the importance of getting their personal finances under control.
The counseling sessions are required before filing and then again before the
bankruptcy is finalized. These classes are mandatory no matter what type of
bankruptcy is being filed.