The country’s new bankruptcy law has been in effect for one year now. In the time leading up to that change, nearly 2 million Americans filed for bankruptcy. That’s 1 in every 57 families who filed before the deadline. Since the new law went into effect, filing has collapsed. That’s great news. Clark wants to remind you about the new rules that go along with the law in case you’re thinking of filing. First of all, you are required to see a credit counselor before you can file. If you can work out a payment plan or work through your money troubles in counseling, you avoid having to file for bankruptcy. The trouble is that many people file when it’s past too late. Of those going for counseling, only 3 percent are able to avoid filing. In addition, many of the “counselors” in the program were actually phonies just trying to take taxpayers’ money. So, the IRS has been busy revoking licenses and bankruptcy courts have had trouble finding resources for people. You want to check for legitimate services at nfcc.org. Also, if you make an income that is below the average in your area, you still file the old way. But if your income is above the average in your metro area, you have to file Chapter 13. Are you feeling danger signals in your life? If you have credit card debt that is more than 1/3 of your annual income. So, if you make $50,000 a year and your unsecured debt is more than $16,000, you are in trouble. So, get out all of your credit cards and add up all of the balances. If it’s more than 1/3 of your income, you need to rethink how you’re handing money.