I heard that they are going to change the law so that when someone files for bankruptcy that they will be still liable for X% of the money they owe. Like 30% or more. That is because some people are abusing the system and taking out large loans and maxing out their credit cards and then filing for bankruptcy.

When my brother filed for it, his wife was out of control and spending way too much. He divorced her, but the bills were in his name. The judge dismissed most of the bills, and he went to pay off the rest. He was lucky to get a loan to get our grandmother's old house and fix it up. The loan company figured that he filed for bankruptcy once, and cannot file again for seven years.

Another friend of mine found out he had diabeties the hard way. He went into a diabetic shock and went into a coma for a few weeks. Ended up with a large hospital bill that he couldn't pay, his health insurance screwed him. So he filed for bankruptcy. he is slowly building back up his credit. The first credit card he was able to get was from Radio Shack, and he paid it off. He signed up for it and they gave him an electronic blackjack machine game. He is still getting back on his feet.

Some suggested that I file for it, but I am doubting if I should if there are 30% loans. I'll do better to just get a second morgage or something and use a 7% loan on the house to pay off my bills without filing for bankrupcy. Credit Cards change up to 21% as well, they offer a low APR of 3% to 10%, and then after six months or so sock it to you with a higher rate.