It is now much harder and more expensive for people to file bankruptcy. The new law that requires debtors to jump through more legal hoops to get out of debt took effect Oct. 17.
Hours before the rush was on as people crowded in courthouses across the country to file for bankruptcy. Anyone filing now will pay a higher fee and undergo credit counseling. It is also much harder for people to erase their debts by filing chapter seven.
In fact, the new law forces people in higher income brackets to use chapter 13 and pay back their creditors over a period of time. But a local debt relief attorney says despite the new restrictions; don't expect bankruptcies to slow down.