| |
|
Article Directory :: Finance & Investment Articles
|
Copyright © 2012
Liz Roberts 
| |
The new bankruptcy law is in effect, and the climate has drastically changed for people who are considering bankruptcy. In this article we will touch on some of the details of the new law, and explain exactly how these new changes will affect you.
First, let's touch on the new counseling requirements. According to the new law, you must complete credit counseling with an agency approved by the United States Trustee's office before you can file for bankruptcy under either Chapter 13 or Chapter 7. Because this counseling is to decide whether you need to file for bankruptcy, or if an informal payment plan would be a better alternative for your situation. The counseling is mandatory for everyone, even for people who know for certain that a repayment plan is not what they want.
However, you are required only to join in the counseling; you do not have to go with any repayment plans the agency recommends.
But if you are given a plan, you will have to present the plan to the court with a certificate showing that you attended the counseling before you can file for bankruptcy. Once your bankruptcy case is over, you will have to attend another counseling session focused on learning personal financial management skills to complete your bankruptcy and erase your debts.
Another major change that comes with the new law effects many people who want to file chapter 7 bankruptcy. Under the old law, most people filing could choose between Chapter 7 and Chapter 13,and most people chose Chapter 7. Because of the new law, many filers with higher incomes will be 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 to the median income for a family of your size in the state you live in. In the context of the new law, your current monthly income is not your income at the time you file, but your average income over the last six months before you file.
Once you have determined your income, measure it against the median income in your state. If your income is equal to or less than the median, you can file for Chapter 7. If it is more than the median, you must pass a requirement of the new law called the means test. The means test requires you to determine your amount of "disposable income" by subtracting different variables from your current monthly income.
If your current monthly income after subtracting these amounts is under $100, you pass the means test, and will be able to file for Chapter 7. If you income is more than $166.66, you will be prohibited from using Chapter 7. Those in the middle of these incomes will be able to file for chapter 7, but will be required to still pay a percentage of their debt.
Yet another important change caused by the new law is that lawyers may be harder to find, and possibly more expensive. The new law has added many complex requirements to the process of filing for bankruptcy that will make it more time consuming for lawyers to represent their clients in bankruptcy cases. The end result being that attorney fees for representation will increase. Also, the amount of time that lawyers must put into the new regulations has increased and it is likely that it may be harder to find a lawyer that solely specialized in bankruptcy in the future. Many experts are predicting that the stress of these new requirements may drive some bankruptcy lawyers out of the field completely.
Now that you know many of the changes the new bankruptcy laws hold for your situation, be aware and file with care.
Liz Roberts is a loan consultant with NewHorizon Finance and has been providing consumers and business owners with financing since 1989. Bad Credit? Join our mailing list for tips on building and repairing your credit yourself without hiring a credit repair. For a list of bad credit credit cards visit http://www.newhorizon.org/Info/unsecured.htm
 EasyPublish™ this article - publishers click here
More articles by Liz Roberts
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
More finance articles: - Bullet Proof Glass: A Protection Against Bullets And Burglars (Tom Faithstar)
Crime rate continue to increase, putting huge companies at risk. Theft and robbery have become more violent. Burglars are equipped not only with knives, but also, with rifles, making it a huge dilemma for companies, in displaying what they sell and protecting it simultaneously. - Important Commercial Real Estate Information That You Should Know About (Stephen Hill)
Before you think about investing in any commercial property, carefully survey the market and pick the right kind of property for your needs. If you choose real estate randomly, you could lose some money on a bad deal or on investments that aren't right for you. Keep reading for some good tips and advice for making more informed commercial real estate buying decisions. - Debt Problems: Help For The Elderly (Holly Petherbridge)
The elderly are falling to credit cards to help them keep up with the rising costs of everyday living. Fixed incomes do not support emergency expenses. There are ways to help keep additional debt from accruing and help pay off current debt. - Commercial Real Estate Ideas That Anybody Can Profit From (Stephen Hill)
Are you aware that there are practically hundreds of thousands, if not millions of properties throughout the Western world that have been foreclosed on in the last year alone? Many of these properties are commercial properties. This means that the real estate market is currently still very precarious, so you must be adequately informed as a customer before purchasing. - Student Loans: Collections Differ From Other Unsecured Loans (Holly Petherbridge)
When taking out a student loan, you are signing on to an unsecured debt which will stay with you until it is paid off. Student loans follow a different set of rules when it comes to collecting on defaulted loans. Understand your reponsibilities before you take out the loan. - The Many Factors That Go Into Your Car Insurance (Winston Takeda)
If you are puzzled about what goes into an insurance policy, then you aren't alone. In this article, you'll learn why. - Simple Tips To Get The Most Out Of Your Auto Insurance (Winston Takeda)
Believe it or not, there are plenty of ways to save money on your car insurance. In this article, you'll learn some methods that will really help. - What's Your $1 Million Business Worth? (Chia-Li Chien)
What are the three most important things in real estate investment? Location, location and location. But what makes a privately held business valuable? According to Rob Slee, founder of Midas Nation, it's timing, timing, timing. During my 2nd quarter 2010 SRI Business Retreat, Slee said you have to play the Transfer Timing Slot Game if you want to maximize your business's value for sale. Let's explore what Slee meant by that. - Know What Your Numbers Mean (Chia-Li Chien)
Have you ever faced a situation in your business and found yourself saying, "I know I need to do something, but I don't know what. Just tell me what to do and I will do it." Emotionally you feel panic, fear or even shame, especially when it comes to business finances. Potentially, that could trickle down to your personal finances, as well.
We Automatically Distribute Articles
To Thousands Of Publishers And Web Sites:
Submit Article
All content is viewed and used by you at your own risk and we do not warrant the accuracy or reliability of any of the information. The views expressed are those of the individual contributing authors and not necessarily those of this web site, or its owner, Takanomi Limited.
|
|
