Under the new law there is almost zero judicial discretion, if a debtor is above the IRS median income statistic they have to do a Ch 13. In my experience any middle class household with two full time working adults will exceed this number. The $100 a month affordability standard is a misnomer because it is not based on actual expenses of the debtor but rather on another IRS expense statistic that in my experience does not reflect people's actual living expenses, particularly housing in light of the recent housing boom (bubble). These people are the ones heading for Ch 13.
A single lower middle class wage earner would likely still be able to file a 7.
I do not think I am putting too much weight on these dual wage earning middle class families being forced into Ch 13.
Thank you for your responses....very informative. We've proven that this topic can be discussed rationally by folks with some level of disagreement - no small feat!
Speaks volumes.
As do the comments from others repeatedly asserting 'credit card abuse is the problem,' or 'irresponsible freeloaders who refuse to pay their agreed upon debts.'
My only guess is that such comments are eminating from from folks who are reflecting the abuses and excesses THEY have engaged in, regarding THEIR OWN tendency to use credit fraudulently.
That, and a lack of experience with an unexpected job loss, bout with cancer, or disabling accident caused by a drunken and uninsured motorist OR some similar unanticable situation is the ONLY thing that will open their eyes... One cannot save enough money, or buy enough insurances to cover for every type of potential disaster.
When the individuals who sneeringly and smugly erupt with a 'pay your bills deadbeat' comment on threads such as these, I can only imagine what events in THEIR lives will be used, to teach them the lessons that YOU have learned from working in the field.
They won't get it, until THEIR kid comes down with some dread disease, that bankrupts them and destroys their wage earning potentials. Then, they will sound like you. Until then, I suspect, you are wasting your breath explaining it to them. To them it's all about abusing credit cards, with an intent to commit fraud. To you, it's about preserving economic viability and the macro economic advantages of giving the hopeless a new lease on life, financially speaking.
What do you think, debtors prisons reinstated in our lifetimes? I wonder...