May 31st, 2008
Why is bankruptcy so hard to file now?
Back in 2005 the bankruptcy laws have been changed and not in the favor of the consumer but in favor of the banks. The laws have made it much harder for a debtor to file for a Chapter 7 bankruptcy, which will obsolve a debtor of all that is owed. Instead most will go through the Chapter 13 bankruptcy. In the process the court will dictate to the debtor how much he or she will have to pay back to the creditors over a five year period. This process is not very pleasent and the court will tell you the debtor how much you must pay each month and there is no if ands or buts about it. You must simply do it. This made debt settlement a much more traveled path of debt relief.