In the run up to the current bankruptcy reform law, lawyers inundated us with a blitz of ‘file before it is too late’ ads. Yes I am guilty, though I correctly pointed out reform meant stricter filing requirements. My colleagues and I did a good job convincing consumers that bankruptcy Armageddon was near. In response, debtors filed in record numbers. Now, some creditors are picking up where we left off. Bankruptcy lawyers across the country report hearing from potential clients who were told by bill collectors they could no longer file bankruptcy to avoid their debt. Additionally these consumers are now bombarded with radio and television spots for debt consolidation services designed to steer them away from bankruptcy.
The bottom line: You can file bankruptcy today, and in many cases, you can do it cheaper than before because many courts no longer require mandatory minimum payments to unsecured medical and credit card debts.
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