Bankruptcy laws changed in 2005, and many consumers are confused about what they can and cannot do when filing for bankruptcy. The laws made it more difficult, but not impossible, to discharge all of your debts in Chapter 7 Bankruptcy. Here are some of the main changes that directly affect consumers.
First, not everyone can file for Chapter 7 Bankruptcy. If you make too much money, you will have to file Chapter 13 and make an attempt to repay your debt. In order to determine whether or not you are able to apply for Chapter 7 Bankruptcy, you will need to compare your income to the average income of families of the same size as yours in your state. As long as it is equal to or below the average, you can still file for Chapter 7.
If your income is greater than the average, you will have to pass the