Tougher Bankruptcy Laws Take Effect October 2005
Talk to a local bankruptcy lawyer right away: (877) 477-1383! Or request a free bankruptcy case evaluation right now filling this form:
Tougher Bankruptcy Laws Take Effect October 2005
In just a few short weeks, President Bush?s Bankruptcy Abuse Prevention and Consumer Protection Act will take effect. In a nutshell, the new law, which goes into effect on October 17, 2005, makes it more difficult to cancel your debts under Chapter 7 Bankruptcy protection. Instead, consumers will find themselves having to file for Chapter 13 Bankruptcy protection and paying back their creditors over a five year period. Here?s a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect - Qualifying - Chapter 7 or Chapter 13? To be able to qualify for protection under Chapter 7 bankruptcy, consumers will have to face a means test. The means test determines if your household falls above or below the median income in the state where you reside. Those whose total is greater than the state median income will not qualify to cancel debts under Chapter 7 protection and will alternately have to file under Chapter 13 and pay back your creditors. The major intent of bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased. The amount you have to pay back under Chapter 13 protection will be greater because instead of a 3-year pay back period, that time frame is now extended to five years - to ensure your creditors get paid. Credit Counseling Anyone filing for bankruptcy under the new law will be required to go through mandatory credit counseling. Be careful before choosing a credit counselor as this field is filled with people looking to line their pockets while emptying yours. To find a trustworthy counselor, check to see if there are any complaints against them or their organization filed with your local Better Business Bureau. Secondly, find out if they are certified by the National Foundation of Credit Counselors or the Association of Independent Consumer Credit Counseling Agencies. Finally, find out if they have not-for-profit status. Personally I recommend Consumer Credit Counseling Services as they meet all three of the above criteria. They can be reached at 1-800-888-2227 and can connect you with a local office. The Cost Factor Filing for Chapter 7 protection under the old laws normally cost under $1,000. You should expect to pay more under the new laws as filing fees have been increased by $60. Additionally, your attorney will be required to double check all your financial information which will take more of his or her time. Also there is greater liability imposed on the lawyer which may cause their liability insurance to increase, which gets passed on to their clients in the form of higher fees. Under the new law, many are expecting fees to increase between 25-50%. Why Were the Laws Changed? The bottom line is that major commercial creditors lobbied hard for reform. Companies like CitiBank, MBNA, and other credit card issuers actively contributed proposed amendments along with generous financial support to reforming the bankruptcy laws - and in their favor, according to many consumer protection groups. ? 2005, http://www.yourfreecreditreportnow.com James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his ebook ?IDENTITY THEFT- How To Avoid Becoming the Next Victim!? and other free bonuses by visiting <a href="http://www.yourfreecreditreportnow.com" target="_blank">http://www.yourfreecreditreportnow.com</a>.
Source: www.ArticlePros.com
Allowing Your Bankruptcy Lawyer To Help You
Even merely considering filing for bankruptcy can leave you with a negative feeling in the pit of your stomach and you will have scary thoughts of losing your home and every dream you ever had of a well-off life will seem to shatter before your eyes The fact is you are not unique Thousands of others are in the same position and experiencing the same nightmares as you . .There is actual hope for your position, but this depends on using an experienced bankruptcy lawyer to guide you through the bankruptcy process A bankruptcy lawyer will determine that your tough financial position doesn’t inevitably mean you have to live out your nightmare scenario As a matter of fact, the best bankruptcy lawyers will and have in previous years helped consumers to get through the heartbreak of bankruptcy every day and are experts in this field . . .Bankruptcy situations that pertain to individual cases are normally better handled by qualified bankruptcy lawyers This holds true even if you have begun the process yourself or you are required by your creditors to file for bankruptcy If you have begun the process yourself then you are in all likelihood hoping that by filing for bankruptcy you will be able to eradicate all of your debts If alternatively, your creditors forced you into initiating the bankruptcy process then their goal is for the process to recover the money and repay what is owing to them . .It does not matter whether you were the one to start the bankruptcy process or were forced by your debt holders; qualified bankruptcy lawyers will help you with the process and make it as tolerable as possible Once you have hired a lawyer they will assess your financial position and will only recommend bankruptcy if that is the only hope of a good solution to the position you are in . .The bankruptcy lawyer you work with will also be in a position to give you advice on whether you should file for Chapter 13 bankruptcy or Chapter 7 Your lawyer should be an expert in both areas and consequently be able to propose the most advantageous plan of action If your situation is so bad that you are at risk of losing your home or car then your best option is to hire a bankruptcy lawyer who will perhaps be able to stop such extreme things from happening . .If you really have no other alternative but to face bankruptcy then you must start searching for a bankruptcy lawyer immediately Even if you are not sure what your choices are, a lawyer will be able to give you a decisive answer If your financial position appears serious to the extent of potential foreclosure then this really is the best action you can take Talking to a bankruptcy lawyer as soon as possible could really help to save your finances The entire process of bankruptcy is very complicated and much too complicated for the average person to comprehend Consequently, it makes perfect sense to consult the professionals and let them determine the best solution for you .
Source: www.rsstnx.com
