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    In 2005 the U.S. was implemented with new bankruptcy laws
    that passed congress. Before that time, filing for chapter
    7 bankruptcies was an easy way out of financial

    Many people spent years being careless with their credit
    and debts because it could be fixed with a quick filing for

    Now that the law has changed, there are more restrictions
    for filing a chapter 7. Before the 2005 revision, filers
    could choose which code they wanted to file under. Income
    did not matter.

    One of the biggest changes is that now those with a higher
    income will have to file under chapter 13 and therefore pay
    off some of their incurred debt. The law also imposed new
    restrictions on bankruptcy lawyers. It may be tougher now
    to find a lawyer who will represent you in a bankruptcy

    In addition to the new income restrictions, there is also
    mandatory counseling that debtors must complete before and
    after filing for chapter 7 bankruptcy.

    Pre-filing, individuals must complete credit counseling and
    post-filing, they must complete financial budgeting. These
    should have been implemented years before. They are
    designed to keep people aware of their spending and keep
    them on track.

    There is also a change for chapter 13 filers. There is also
    a new income demand. All disposable income left after
    paying actual living expenses must now go into their
    repayment plan.

    The IRS now determines the allowed actual living expenses,
    not the actual living expenses, if their income is higher
    than the median income in their state.