New Bankruptcy Laws Take Effect

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The Bankruptcy Abuse Prevention and Consumer Protection Act calls for debtors to undergo credit counseling and take a financial management course.

Income will also factor in and some debtors could find it difficult to completely start over.

Thomas Woodward, Attorney at Law, says, "85 percent of the individuals needing to file for bankruptcy will still be able to do the old Chapter 7. It’s the other 15 percent that will pass the means test and will have to go in the repayment plan with Chapter 13."

Attorneys do say they will see more paperwork and more time, which means increased fees, though they don't expect a huge slowdown in filing.

Right now debt in the U.S. sits at an all time high of more than $2 trillion.