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Debt seems to be all around us from credit cards to medical bills and in the past several years more and more people are filing for bankruptcy.
Lawmakers on the state and national level are working towards making it more difficult for consumers to file for Chapter 7 bankruptcy.
"There is certainly a need to try and do something to cut the bankruptcy down. But personally I think that they need to look at the credit card companies and try to at least get some regulations on them as well as the individual consumer." says Attorney, Pierce Stacy.
Stacy represents bankruptcy cases and says the majority of debt comes from credit cards or medical bills.
Proponents believe instead of filing for bankruptcy as a last resort, more people are taking advantage of it to get rid of their debts altogether. But Stacy, disagrees saying the bill could do more harm than good for the average consumer.
"If they tighten up laws of Chapter 7 bankruptcy then there's gonna be a lot of people that are not gonna be able to have their debts discharged that actually need them discharged. Therefore, you'll have a lot of people that are in debt, can't get credit, won't be able to spend money and that sort of thing." says Stacy.
If lawmakers get their way, there are certain criteria you must meet before you file for bankruptcy protection. One is, if you don't have the disposable income to pay creditors over a three year period. Second is, if you're unable to consolidate your debt or negotiate a repayment plan with your credit card company. A third criterion is you must work with the government to limit your expenditures on all necessities like rent and groceries.
The majority of debtors don't want to file for bankruptcy, but sometimes, they don't have any other choice. Lawmakers want to make it's the last possible option.