Tougher Bankruptcy Laws Take Effect October 2005

Only in a few short weeks, President Bush's abuse of bankruptcy
Prevention and Consumer Protection Act will take effect. In a
In short, the new law, which came into effect on October 17,
� In 2005, make it more difficult to cancel your debt, in accordance with chapter
� On the 7th filing for bankruptcy protection from. Instead, consumers will find themselves
No file for Chapter 13 bankruptcy protection, and pay
Back to its creditors over five-year period.
�
Here's a look at some of the major changes that will affect
In the choice of consumers filed for bankruptcy, the new law says
Entry into force --
�
Qualifier - Chapter 7 or 1 3 chapter?
�
In order to be eligible protection under Chapter 7 bankruptcy,
Consumers will have to face a means test. Means Tested
The decision, if your family is above or below the median
Income in the state where you live. Those total
More than national median income, will not be eligible canceled
The debt under Chapter 7 of the protection and will turn to
Documents in accordance with Chapter 13, and repay your creditors.
�
The main intent of bankruptcy reform is for the people,
Can burden and make some payments on their debt, so that
These amounts, and still allow them the right to own
The remaining debt????.
�
You need to pay back the amount, in accordance with Chapter 13 protection.
Greater because it is not a 3-year return period, that is
Time frame is now extended to five years - to ensure that your
Creditors receive compensation.
�
Credit counseling
�
Any file for bankruptcy under the new law will provide that
To go through mandatory credit counseling. Carefully ago
Choice Credit Counselor as this area is full of people
Looking in their pockets, while emptying your.
�
Find a trusted counselor, whether there are any
Complaints to them or their organizations brought you
The local better business. Secondly, if they found
Certification by the State Foundation of credit counselors or
Association of Independent Consumer Credit counseling agencies.
Finally, if they are not found for non-profit status. Personal
I suggest that the consumer credit counseling services, provided that they meet all
The three above criteria. They can be reached
� 1-800-888-2227, and you can be connected with a local office.
�
Cost factors
�
Applications for Chapter 7 protection under the old law usually cost
According to 1000 US dollars. You should not expect to pay more under the new law
As the filing fees have been increased by 60 yuan. Also, you
The Attorney General will have to carefully check all of your financial
Information will take more of his or her time. Also
Greater responsibility is imposed on lawyers, which may cause its
The increase in liability insurance, which was passed on to their own
Customers in the form of higher fees. Under the new law, many people
Estimated costs to increase between 25-50%.
�
Why change the law?
�
The bottom line is the main commercial creditors lobbying efforts
Reform. Companies such as Citibank, mbna, and other credit card
Issuers positive contribution to the proposed amendments, as
Generous financial support to the reform of insolvency law --
And in their favor, according to many consumer protection groups.
�
� � 2005, http://www.yourfreecr
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�
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