People dealing with unemployment or other problems associated with the struggling economy may have considered individual bankruptcy as one solution to their problem. However, there have been some changes to the bankruptcy laws in recent years, and some folks believe that it is now harder to discharge debt by filing for bankruptcy.
First of all, this isn't necessarily true. Chapter 7 bankruptcy -- in which qualified debts are liquidated -- is available to consumers who fall below certain income, assets and debt ratio thresholds. Consumers who do not meet these requirements may very well still be eligible for Chapter 13, in which a repayment plan is established and any eligible debt remaining after the three- to five-year repayment period are eliminated.