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Congress approved sweeping changes to the
Bankruptcy Code in 2005 that make it more difficult for many Americans to get
relief from their debts. The 500 page bankruptcy law limits many debtors'
rights to file Chapter 7 bankruptcies (the preferred form) because it lets them
erase most or, in some cases, all of their debts, so they can start over with a
clean financial slate.
The news is not entirely
bad. You can still file for bankruptcy. Foreclosures can be
stopped and harassing phone calls ended. Contrary to some rumors the sky
did not fall. The new law imposes a "means test" that determines
eligibility for Chapter 7 cases and the length of Chapter 13 repayments.
The means test will be based on median
income. This limits some higher income people from filing Chapter
7. It also extends Chapter 13 plans if you make more than the average for
your household size.
MOST PEOPLE WILL NOT BE AFFECTED BY
THIS CHANGE.
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The new changes to the
bankruptcy laws:
> Make bankruptcy proceedings more complex
> Prohibit some higher income people from
filing bankruptcy
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Require more documents and information prior to filing
If you are
considering bankruptcy, call and schedule your appointment today. . Now is the
time to file. The proposed new bankruptcy law may create a few new hurdles but
relief is still available. |
FREQUENTLY ASKED QUESTIONS:
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What is credit
counseling?
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The new Bankruptcy
law requires more documents and credit counseling prior to and during the time
the case is open. This is not as bad as you might think. The
counseling can be done in person or even over the Internet.
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What
kinds of changes will the new Bankruptcy law make?
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7
Straight Bankruptcy
or Chapter 7 is the preferred type for most individuals. This option lets
most people get forgiveness of credit card debts, repossessions, and signature
loans. Most of the time, there is no danger of losing vehicles or houses
as long as regular payments are made.
There is usually only one court appearance which lasts less than
10 minutes. Costs vary according to the details of your case. Click
here and we will call to discuss your case and schedule an
appointment. |
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| If I am behind on my
mortgage, will the new law affect my ability to stop a foreclosure?
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Chapter
13
A “Wage
Earner” or Chapter 13 Bankruptcy stops foreclosure and lets
people pay back their mortgage AND get out of many other debts. In many cases,
it is that other debt, such as credit card debt, which makes it impossible to
pay a mortgage on time.
This chapter is often
used to catch up an overdue mortgage and get rid of credit card debt. It is
sometimes even possible to reduce the amount and terms of vehicle loans with a
13 filing.
As the name suggests,
overdue bills are put on “hold” and you are allowed to pay the past
due amount out of current income and cure any late amounts. Credit card
debts are wiped out in 36 to 60 months and creditors are required to allow you
to catch up late amount generally with no penalty.
Payments are
usually not 100% and are based on your earnings. This means you only have
to pay back what you can afford based on your income and monthly expenses.
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| Do people regret
bankruptcy? |
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If you are considering Bankruptcy, we urge you to get started as
soon as possible. The biggest regret most people have is waiting too long
before getting help. |
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How do I get
started?
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The first step is to
call our office for an appointment. We are committed to assisting our clients
choose their best options and get their financial lives back on
track. |
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Click here and we will call to discuss
your case and schedule an appointment. |
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BACK TO GOUNER LAW
BANKRUPTCY PAGE
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