“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”
Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.
The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.
Unless Paulsen et al create a new bailout for credit card debtors.