The main thing to note about Bankruptcy filings is that since BAPCA passed in 2005, the filing process has in total become much more stringent. The implementation of BAPCA and the “means test”, changed bankruptcy in that the process has become much more difficult for American consumers to qualify for a Ch.7 filing (essentially scot-free elimination of debts).

Bankruptcy serves a purpose for those that don't have many options available to them. It should typically be looked at as a last resort. However, if you feel it's the only option available to you, here's everything you'll want to know. It has become much more difficult to file for a Chapter 7 and due to BAPCA, most consumers filing for bankruptcy would need to go the route of a Ch.13.

Uscourts.gov states that a chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. It is different from a Chapter 7 in that the debtor does not get out of debt scot-free and will still be liable for making partial payments of liabilities.