The dramatic changes to the bankruptcy law did not eliminate this last resort.  Even Chapter 7 bankruptcy, which allows people to wipe their debt away without any repayments, is still available.  The major changes surrounding Chapter 7 involve anyone being able to qualify for it.  There are income limitations involving the availability of Chapter Seven bankrupcy now.  

Without splitting hairs about the difference between a median and an average (something that many of us last heard about in eighth-grade math class), bankruptcy still exists even for those who earn more than the state median.  The major difference here is that the very strong presumption that these high earners should be paying something back in a situation very much like debt consolidation.  Why?  Because they can afford to.  This is the overall wind shift in the new law, and exactly the reason that Chapter 13 bankruptcy is around.   

Ok, this is really a few myths all into one.  Most people who file bankruptcy with someone who understands the protections available for their property lose their property.  Also, the very strong power of "bankrupty protection" is still as forceful as ever.  As soon as your creditors are notified of your filed case, phone calls, letters, lawsuits, foreclosures and even wage garnishments must stop immediately.                     

Prices are higher than before.  The filing fee has gone up, and there's the new cost of credit counseling. It's not out of reach, though.  While it's one of life's little ironies that it typically "costs money to go broke", an affordable payment plan is available with our office.