There have been rports that some collection agencies have been telling consumers that they cannot file bankruptcy.  I think that since the new bankruptcy law was passed in 2005 that people think that bankruptcy is gone.  This is simple not true.  You can still file for bankruptcy if you are having a financial crisis.

New Bankruptcy Laws Require More Documentation

The new bankruptcy law requires more documentation and preparation than was necessary with the old law.  The majority of people who cannot afford their debt obligations, especially those families and individuals who are under the median income limit for their state can obtain relief from most or all of their debts and a new start.

The test Congress created for determining whether a person filing for relief is able to repay a portion of his or her debt ( chapter 13 or chapter 11) is more complex.  Immediate relief can only be gained from a Chapter 7 bankruptcy.  In this instance all debts are relieved.

This information is of general interest and not considered legal advice.  Should you require legal advice seek the services of a qualified professional or attorney.