Since the goal of these modifications was to reduce the number of filings, the laws have become stricter and less customer-friendly. Filing for bankruptcy is no longer a simple solution, and a debtor must overcome numerous obstacles before being designated eligible for bankruptcy.
The means test is the most difficult item that has been introduced. This test applies to all individuals with incomes above a certain threshold. A debtor whose income is greater than the state's median income must take this test to determine his bankruptcy eligibility. This test takes into consideration the debtor's current income and a certain amount of expenses required to maintain a decent standard of living. If, after paying the government-allowed monthly expense, the debtor has insufficient funds to pay off his debts, he is eligible for bankruptcy.
Bankruptcy applicants are now required to participate in credit counseling sessions. This is done to aid the debtor in comprehending the loan process and its significance.
People who are ineligible for chapter 7 bankruptcy but still wish to file are required to register under chapter 13. Chapter 13 is more akin to a court-ordered repayment plan in which a debtor must repay 1% to 100% of the total balance of his unsecured loans.
" - https://www.affordablecebu.com/
