I am not considering bankruptcy; I am not in a position where I would need to do so. I am just curious. I was trying to explain to a friend that it is a lot harder to file for bankruptcy now than it once was, but I don't know what the change was.
While the changes were meant to make things a lot harder, they haven't made them that much harder. What makes it difficult is coming up with all the documentation and having to do credit counselling prior to filing (you can do this as late as a day before you file, the other answerer is wrong in saying it's 6 months, it isn't, it is maybe a couple hours online or on the phone) and then after you file you have to take a debtor education course. This can be up to three hours on the phone or internet or in person. This has to be with a provider that is approved through the US Trustee's office.
Chapter 7 – There are some loose income requirements now. If you make above the median, then you must go through the means test (which is like trying to fill out a complicated tax return) to determine if there is a "presumption of abuse." Even if you make above the median for your household size and locale, you may still be able to file a chapter 7, but it depends on how your income and hypothetical expenses look on the means test. While under the old law you could keep a car without reaffirming as long as you were current on it (same with other personal property), the law requires now that you have to reaffirm (though whether this is how it works in practice depends on the creditor's desire to receive the money rather than repo the property), though this requirement is not the case for real estate so you can still keep your house as long as you are current without reaffirming. This is an important distinction because not reaffirming means if you default, you aren't on the hook for a deficiency because you are discharged, but if you reaffirm you ARE on the hook for a deficiency.
Chapter 13 – Not too much has changed with the chapter 13, but there is a means test for it as well to determine how long the plan is and the minimum you have to pay into the plan for the duration. Also, what was known as the superdischarge is less "super" (this would discharge debts that weren't dischargeable in a chapter 7 like restitution, child support arrearages, taxes). Additionally you have to be current on child support, pay your taxes in full and provide proof that you have filed your taxes the past four years. Also, it used to be that any car could be "Crammed down" which mean you only paid the market value and a little interest instead of the actual debt amount. Now if you bought the car less than 2 and a half years ago, you have to pay the entire loan amount.
In both types of cases, you need to provide documentation of your income for the last 6 months for all sources to your attorney, and the trustee will require the past 60 days worth.
