Keeping up with the economic changes, the government has to carry out a stricter policy on filing for bankruptcy. In fact in April, President Bush has signed into law The Bankruptcy Abuse and Consumer Protection Act which focuses on the law behind bankruptcy, making it harder for ordinary individuals with debts to be saved by filing for bankruptcy.

Under Chapter 7 of the code, courts are allowed to clear an individual from her consumer debts. Bankruptcy filings will be scrutinized and must follow the more stringent process based on Chapter 11 which seeks repayments by installments and the help of a legal counsel. Furthermore, bankruptcy applications or filings have increased significantly countrywide

Another problem is the law on credit card payments. The law requires credit card companies to offer a payment scheme on installment basis to pay off debts. With credit card minimum payments doubled, an average person faces a higher monthly payment way beyond his capacity to pay.

Bankruptcy lawyers are caught in between the surge of bankruptcy fillings and familiarization with these new laws. In effect, they tend to charge additional, if not higher, fees with the added responsibility they have to shoulder

Bankruptcy fillings are expected to get more complex, costly and will baffle an average person with all its overwhelming changes. As we know the government is already bombarded with bankruptcy applications so it is highly recommended that if you are in the verge of bankruptcy, do not hesitate to file now.