Bankruptcy “reform” was enacted at the behest of the creditor lobby, you know, the ones with the money, in 2005 partly on claims that many people were filing Chapter 7 bankruptcy who could afford to pay at least some of their debts in Chapter 13 bankruptcy.
Contrary to popular belief, that has NOT happened.
Some people still call me saying they make too much money to file bankruptcy.
I have to run the numbers through the software and analyze the results before making that statement.
I have had maybe four clients in seven years who could not fit into Chapter 7 or Chapter 13 bankruptcy.
For several of them, it was a question of timing.