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Which makes the changes to the rules surrounding personal bankruptcy in 2005 even more ominous, especially when it comes to big ticket items such as student loans.

https://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_an...

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The primary changes were to do with credit card debt. If you make >40k then you are not able to do Chapter 11. Instead, you need to do Chapter 7.

No no no no, none of this is correct. Income limits are based on your state's median income for your family size. Chapter 11 is always available; it doesn't make sense for most individuals because of quarterly UST fees. Chapter 7, and Chapter 13 plans based on actual expenses were means tested. Private student loans were made non dischargable. Times between serial filings yielding a discharge were increased by 25%. Pre and post filing counseling/edu were mandated.

Google BAPCPA for more because the bill Bush signed sucks. EDIT: Nevermind, the wiki link in the post before yours is great.

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