The new BK law of 2005(ZT)

If your income is under the medianincome for your area, then you can file Chapter 7 and walk away fromyour debts. This is essentially the same as the previous BK law, withthe exception of the the income testing. If you make over the median,then you must file Chapter 13. Chapter 13 payments are calculated onIRS guidelines, which haven't been revised for quite awhile. Thepayment to the trustee will not reflect your true living expenses butwill reflect what the IRS thinks it costs the average family to live.Chapter 13 plans are now standardized at 60 months rather than 36months. Unsecured debt is paid back after trustee's fee(10%) andsecured debts are paid back at (100%). Unsecured debts get paid backwith what's left over. The new BK plan makes it nearly impossible topay back in its entirety and it is estimated that only 20% willcomplete the payment plan. (Only 36% completed under the old plan.)