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As of 2005, new bankruptcy laws went into place that were
designed to stop those
people that have been abusing filing Chapter 7. This new law,
called the Bankruptcy Abuse Prevention and Consumer Protection Act
of 2005 is quite comprehensive and was very controversial at the
time. It provides for a number of
restrictions that will require people that are considering filing
bankruptcy to follow before being able to have their bankruptcy
discharged. These changes have made it harder than ever to file
Chapter 7 Bankruptcy.
What The New Law Says
There are several things that are now taken into effect in
regards to filing Chapter 7 under this new law. Here are some points
that are important to know about:
- There are a variety of new deadlines included that you must
meet. If any of these new deadlines are
missed, your bankruptcy will not go through. There are substantial penalties for refilling
and it's harder to work through
- Your attorney will provide you with a test that will determine if you
even are allowed to file bankruptcy. This test will help determine if you can
file Chapter 7 or Chapter 13 and is called a means test. More people
will be required to file under Chapter 13 which will require you to
have your debts restructured so that you still have to pay them
back, just at a lower rate.
- Any assets you have will probably have to be valued higher
than before and this includes furniture, cars, and other assets
you have
- In addition there are residency requirement in place that
are designed to stop some individuals who were seeking to use the laws of one area over
another if they were more favorable to them.
- There are penalties and fees for trying to re-file. Although it
was easy to do this in prior years, it is now going to be seriously
challenging to do so.
- Judges are allowed to give up to a 20% in reduction to the
debt if the creditors are unwilling to work with consumer credit counseling
companies to help you to relieve your debt.
- You can expect to find new protections in the law that allow your
college savings plans and your retirement funds to remain untouched
by the filing of Chapter 7.
With all of these new laws in place, it is even more important to
contact a skilled attorney when it comes to filing Chapter 7.
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Home
Debts That Filing Chapter 7 Won't Take Away
Filing Chapter 7: Is It The Right Thing For You?
Filing Chapter 7: Understanding the New Laws
Filing Chapter 7: Understanding the Process
The Basics Of Filing Chapter 7
Here's Why Is Filing Chapter 7 Is A Good Plan
Is Filing Chapter 7 Bankruptcy In Your Future?
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