Prior to filing for bankruptcy, families will need to complete financial education and those being moved into chapter 7 or 13 will need to work with a financial counselor to actually establish that repayment strategy.
That's a change from the previous test, which was a needs based test, or support based test and now it's dictated as a relationship-based test, as well as needs-based. That's a significant change and might hurt a lot of lower income families as a result.
It's just something that flagged in the computer, not a lot of suspicion, until you don't cooperate. That's when they'll get serious, not when you send documents and schedule meetings at their request.
There's a new needs-based test put into place on chapter 7 that will essentially eliminate most middle-class families from being eligible for bankruptcy.
The burden of proof is on the taxpayer. So, it's up to you to provide records of things you say you've bought, or things along those lines.
What they could so is maybe a debt consolidation loan, what that can do is change a little how your capacity of debt looks; change the number of cards you have, which will also bring with it a whole host of other things that have opposite effects.
