While Bankruptcy is still an option, most clients are not interested in filing. This is largely due to the new Bankruptcy Laws as of October 17, 2005. Where in the past you could file Chapter 7 and in approx 4 months the debt would be eliminated, now you must take an approved Financial Counseling Course within 6 months prior to filing.

The purpose of the new Bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased. Theses people must file Chapter 13.

Debtors considering Bankruptcy must provide to the trustee a copy of a tax return or transcript of a tax return, for the period for which the return was due. You should seek an attorney within your home state as Bankruptcy Laws vary from state to state.

Another major change to the Bankruptcy Laws involve certain hurdles the consumer must clear before filing Bankruptcy, no matter what the chapter.