If you must, file for bankruptcy now before the law changes

While every attempt should be made to avoid filing for bankruptcy, sometimes it is not a choice - particularly for those driven to bankruptcy due to a medical situation.

But if you must, you have to do it now. Starting October 17th of this year, a new law is going to take effect that makes it tougher to erase debt obligations in bankruptcy. Pushed by credit card companies, President Bush and Republicans overwhelmingly approved this law that is very hard on America's poor. However, there are still about 7 weeks left to get organized and work with a lawyer to make it all happen. As the chart shows on the right, many Americans are working hard to take advantage of the old law.

Related article: How to consolidate your debt?