Back in 2005 there was a great deal of publicity about dramatic changes in the Bankruptcy Law passed by Congress and signed by President George W. Bush. The media covered this rather significant event along the lines of indicating that “no one would be able to file bankruptcy anymore”.
Like much in the media, this reaction was overblown. While bankruptcy lawyers attended seminars and learned all there was to know about the new law, they also learned that the law was very poorly drafted and, as time went on, bankruptcy lawyers learned that the idea that “no one would be able to file bankruptcy again” was far from true. In fact, the law is so poorly written that, while extra work is required by bankruptcy lawyers to file bankruptcies as compared to pre-2005 days, nearly everyone can qualify for a bankruptcy under the current law.
Thus, no one need be alarmed by the verbiage that “no one can file bankruptcy anymore”.
In fact, there are a number of advantages to filing bankruptcy, as compared to remaining in a debt ridden state. First of all, filing bankruptcy provides resolution to financial difficulties and provides a fresh start.
In addition, not filing bankruptcy will make it difficult, in most cases, for credit scores to increase over time. Individuals who do file bankruptcy generally experience a boost in their credit score after bankruptcy. This generally takes 12 to 18 months, but improving your credit score is much easier to accomplish with a bankruptcy filing than without, since if there is no bankruptcy filing the debts continue to bring down the credit score, while filing bankruptcy eliminates the debts.
You should contact a competent bankruptcy lawyer to fully explore your options in connection with financial difficulties.