New Bankruptcy Case Filings
The Bankruptcy Act: the information needed to know before you file
The bankruptcy law is in force, and the climate has changed radically considering filing bankrupt. In this paper we present some details of the new law, and explain exactly how these new changes will touch.
First, the feel of the requirements new orientation. Under the new law, you must complete Credit Counseling with an agency authorized by the office of president of the United States before filing for bankruptcy under Chapter 13 or Chapter 7. Because this forum is to decide whether to declare bankruptcy, or if an informal payment plan would be a better solution for your situation. The consultation is mandatory for everyone, even people who know certain that a payment plan is not what they want.
However, only obliged to participate in the consultation, you did not go with any repayment plan the agency recommends.
But if given a map, you must submit the plan to the Court a certificate stating that participated in the consultation before it can declare bankruptcy. Once your bankruptcy case is complete, you must attend another counseling session focused learning skills in financial management staff to complete the bankruptcy process and to erase their debts.
Another important change that comes with the new law impacts many people who want to file Chapter 7 bankruptcy. Under the old law, most people could choose between filing Chapter 7 and Chapter 13 and most people chose Chapter 7. Because the new law, many higher-income reporters are prohibited from using Chapter 7.
The first step in determining whether or not you can file for Chapter 7 is to compare your current monthly income of the median income for a family of your size in your state under the new law, his current monthly income is income when it is, but their average income of the last six months before filing.
A Once you have determined your income, compared with the average income in your state. If your income is at or below the median, you can file for Chapter 7. If more than than the average requirement must pass a new law called the means test. The means test requires you to determine your level of "Disposable Income" subtracting the different variables of your current monthly income.
If your current monthly income after subtracting these amounts less than $ 100, you pass the means test, and be able to file for Chapter 7. If your income exceeds $ 166.66, which prohibited the use of Chapter 7. Those in the middle of the income may benefit Chapter 7, but must still pay a percentage of their debt.
Another important change caused by the new law is that lawyers may be more difficult find, and perhaps more expensive. The new law has added many complex requirements of the bankruptcy process to make more time for lawyers to represent customers in case of bankruptcy. The end result is that fees for legal representation will increase. Furthermore, the amount of time to involve lawyers to the new regulations has increased and is likely to be difficult to find a lawyer who specializes solely in bankruptcy in the future. Many experts predict stress these new requirements may drive some bankruptcy lawyers in the field altogether.
Now that you know a lot of changes in bankruptcy law stick to their new situation, be aware and place carefully.
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