bankruptcy consumer protection and abuse protection
The bankruptcy consumer protection and abuse protection act both became law in the year 2005. Though filing for bankruptcy has become more difficult, but the new bankruptcy laws haven't made any reduction in the number of people filing bankruptcy.
The bankruptcy consumer protection and abuse protection act both became law in the year 2005. Though filing for bankruptcy has become more difficult, but the new bankruptcy laws haven't made any reduction in the number of people filing bankruptcy. Many people are eager to file bankruptcy and at the end of March 31 2010, a total of 1,057,686 people have filed bankruptcy under chapter 7. You can even file bankruptcy; Bankruptcyonly will help you in the filing process.
What should you consider before filing bankruptcy?
Bankruptcy cannot be filed if the person has filed it in the past 8 years. This is not allowed under the chapter 7 bankruptcy laws. According to the new laws, the filer income should be below the state median income. A well qualified bankruptcy attorney will reduce the income. There are even different rules regarding how to file for bankruptcy, but they are complex and low earners would only be able to obey.
Though the filer is entitled to keep most of his possession but any non-exempt assets needs to be handed to the trustee thus he can sold them. This can include anything from luxury car, art work, jewelry etc.
Filing chapter 13 bankruptcy under the new laws
If anyone is unable to obey the new law then it would be necessary for him to file chapter 13 bankruptcy. This entails making monthly payments to creditors for a period of 3-5 years. None of the above rules apply and it would be possible for restructuring the repayments of few non-eligible debts like car loans, federal taxes, child support etc. Bankruptcy credit counseling can also be taken before filing bankruptcy.
Pre bankruptcy credit counseling
According to the new law, within 180 days of filing, the bankruptcy credit counseling should be received from a government firm. The counselors which appear on the U.S trustee program are only entitled to provide the service. If the counseling is taken from any unauthorized pers 
on than it wont be recognized. It's because one has to provide a certificate of credit counseling program and a debtor education course after successful completion of the program.
A pre bankruptcy credit counseling session should include a comprehensive budgetary analysis. This encompasses 60-90 minutes session on telephone or online. This session will cost around $50, but it can be put aside if one is unable to pay. One has to provide personal bankruptcy information for the session and after completion the certification would be given.
Debtor education course
A new requirement in the chapter 7 bankruptcy means test is a debtor education course. This includes advice on money management, better budgeting etc. The session length is usually 2 hours and it costs around $100. This fee can also be put aside if it's unaffordable for the debtor. The certification of the course should also be provided before filing bankruptcy.
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