Credit Score FAQ: Why has the New Bankruptcy Law been put into place?
Credit card companies are the reason for the new law and they pushed hard for its passage. In this way they lock most consumers into their debt by forcing a payment plan instead of erasing it. Of course, people would and should pay for their purchases. But, in the past, sometimes when it became hard to do this you could declare bankruptcy to eliminate these debts. Now this has changed. Because of the new law, it is of great importance that you completely understand there is no escape from your obligations. So you must avoid the circumstance of getting there in the first place.
