If you are considering filing Bankruptcy it is extremely important that you familiarize yourself with bankruptcy law and the recent changes to the backruptcy code in the United States.
The New Bankruptcy Laws
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, as it is formally known, has made filing bankruptcy a considerably more tedious and time consuming process than it already was. However, the end result is an increased and direct benefit to the debtor. Some particular changes to note are:
- some filers with higher incomes aren't allowed to file Chapter 7
- All debtors must under go credit counselling through an approved course provider
- Bankruptcy attorneys must file additional paperwork providing more detailed documentation of income
- Disposable income measured through a standarized Means Test
These are just some of the many changes made to bankruptcy law in the U.S. The rules and regulations regarding bankruptcy filings are many and complex. You should seek the professional consultation and advice of an experienced bankruptcy attorney in your area as you consider filing for bankruptcy.
Bankruptcy Term of the Day
The exclusivity period allows a Chapter 11 bankruptcy debtor the ability to negotiate the settlement of their debts by proposing and soliciting support for their bankruptcy repayment plan for bankruptcy reorganization without interference from creditors who may want to offer competing plans.
Latest Bankruptcy Question
The new Bankruptcy law in 2005 created a means test to determine eligibility for a Chapter 7 bankruptcy.
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