You are down with credit card debt.
You need help desperately and are looking out for debt relief.
This is a common state of mind of most American citizens reeling under the effects of recession.
The need of the hour is some honest counseling and a correct understanding of New Bankruptcy Laws.
You may have been advised frequently to file for bankruptcy for debt relief.
Well let me tell you frankly, it is easier said than done.
You need to understand all the NUANCES of bankruptcy before taking the leap.
Given below are a few complexities of bankruptcy.

1. It is a legal procedure.
   
2. You need to qualify for bankruptcy.
   
3. You will enjoy protection only on exempt property.
   
4. Exemptions are laid down by each state and vary drastically.
   
5. As per new laws if your income is above the median income level you will no longer be able to take the advantage of the fresh start.
   

Your advisors on debt relief may not tell you this but let me explain it to you.
As per earlier laws you enjoyed two types of protection on bankruptcy.
The first is on your current assets and the second on future earnings.
Your personal assets that are specified by the state laws are exempt from obligation.
Future earnings were also not under obligations so that you could go in for a fresh start after the completion of the proceedings.
Now here comes the caveat as per the new bankruptcy laws.
As per the current reform bill if a debtor's earnings are higher than the median level he will no longer be eligible for a straight bankruptcy.
He will have to file for bankruptcy under a new version of chapter 13.
Under the new bankruptcy laws the debtor will have to propose a repayment plan using a large proportion of his future earnings to meet his debt obligation.
This arrangement will have to continue for almost five years.
So think before you take the leap and file for bankruptcy as debt relief.
New Bankruptcy Laws may not be so friendly.