About The BK Laws Changing (And Some)

Question:
I thought that I had read in a newspaper awhile ago that they want to change the laws so that you can't discgarge credit card debt. Is that true? Personally, for me and hubby, we don't have any credit card debt, basically a lot of medical bills, a few small bills (under $100 for old cable bill which we shouldn't owe cause we gave them their stupid box back) Only big bills I know of are one for over $600 for a bank (not a loan) and one for over $2,000 for a lease we had to break. How much time can a company/collection agency try to garnish wages if you owe them? I am planning on getting a job in a few months and don't want to get a notice one day that I am going to be garnished. I don't know if they can even find me...I never heard from anyone when I moved out of state until I had a phone and decided to take the private listing part off. Does that mean if I kept my home phone unlisted and private they wouldn't be able to find me? Can they find you through a social security number or is that private under IRS laws? If It did come to that though (garnishment) I would file BK.

Answer:
Although Congress proposed bankruptcy "reform" that would make it difficult to discharge many debts, this bill never passed, and the law was not changed. Collection agencies can collect debts for years, depending on the applicable statute of limitations (which may not be that of your state; it may be chosen by the credit card company in their credit agreement.) My general recommendation is that if your circumstances aren't likely to worsen, and are likely to improve, file *now*. You may not be able to file later, it may cost you a lot of money to get to "later," and you might not be able to qualify for a Chapter 7. Speak with a local bankruptcy attorney to get some information about how best to proceed.





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