Question by Brickstser64: What makes it harder to file bankruptcy now, rather than several years ago?
Specifics welcomed. Thank you.Whoops,can you include State or
Federal taxes owed in your bankruptcy?
Best answer:
Answer by CatDad
Bush passed a bankruptcy reform bill in 2005 that made it harder to file for Chapter 7. (Credit card giant MBNA was Bush’s #1 campaign contributor – go figure.) Chapter 7 discharges most private debts like credit card debts….but not taxes or student loans.
Chapter 13 is a court supervised repayment plan that does not discharge debt…taxes may be part of this type of filing.
What do you think? Answer below!