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How does the new bankruptcy law affect Chapter 13 filers?

Under the old law, if you filed for Chapter 13, the bankruptcy court determined what you could afford to pay based on what you and the court deemed to be reasonable and necessary expenses. Under the new law, the court will apply living standards derived by the IRS to determine what is reasonable to pay for rent, food and other expenses to figure out how much you have available to pay your debts. The IRS regulations are more stringent, which means you will have to allocate more of your income to repaying your debts.