There are some new bankruptcy laws going into result before long and many think they are much needed.The new bankruptcy code requires certain filing events that do seem beneficial for the consumer. For example under the new bankruptcy code, a consumer is required to take a financial counseling course within the 6 months prior to filing for bankruptcy. Financial analysis may lend to a person deciding that bankruptcy is not actually the best option for them. The majority of people don’t even take this step before heading straight for the bankruptcy lawyer. This prerequisite may save many consumers from making a rash decision.

If your current monthly wage is more than the median in your state then there are other factors to consider before you can file for bankruptcy. By multiplying your existing monthly income, minus expenses, by 60, you get what is referred to as the result. If the answer is less than $6000 or 25% or less of your unsecured debt amount, then you can file for chapter 7 bankruptcy. If it is 25% or more of your unsecured debt, or $10,000 or more, then you are required to file for chapter 13 bankruptcy.

A financial management course is compulsory after you have filed for bankruptcy and prior to the bankruptcy discharge. There are financial management tips that can help you to steer clear of landing yourself in bankruptcy court a second time.

Clearly, bankruptcy reform is intended to cut down on the number of bankruptcies. This is a sensible goal when you put these factors into play. It may not make for very pleased consumers, but the creditors are surely going to be in a much better position.