File Chapter 7 under the New Bankruptcy Laws
December 8th, 2009 by bankruptcy
Experts say that it is going to become more difficult and tricky to Chapter 7 bankruptcy may be harder to file under the new law for some people. According to the new chapter 7 rules if you are high income earner you are not allowed filing Chapter 7, you will have to pay some of your debt under the Chapter 13 bankruptcy. Now before filing for any bankruptcy you will need to take counseling on debt management and budgeting before you can erase those debts. There are also new laws for the lawyers so it is very much possible that finding a bankruptcy attorney may be difficult. Following are some changes in the Chapter 7 Bankruptcy.
The new bankruptcy rules
According to the new rules if you decide to file for personal bankruptcy then you need to consider the amount of income you earn, not everyone can file for Chapter 7 bankruptcy. To measure this income you need to gauge your monthly income against the median income for the size of your family in the state you live. If you income is less or equal to the median then you qualify for a Chapter 7 bankruptcy. If it is more then you need to pass the means test to file for Chapter 7. The idea behind the mean test is to find out that after paying for the necessities of the expenses is there enough disposable amounts left to pay back if you are filing bankruptcy on chapter 13.
You are also needed to go through counseling with an agency approved by the United States Trustee’s office before you can file for chapter 7 or chapter 13 bankruptcies. The idea behind the counseling is to determine whether you really need it or you can work on an informal plan to get out of your debts.
With more complicated rules the Bankruptcy Lawyer are going to get more difficult to find and more expensive to afford. The lawyers need to vow on the accuracy of the information that their client has given. This means more work and time spending on bankruptcy cases.
Medical debts
If you are facing a lot of medical expenditure and are not able to pay back anymore you can go for medical bankruptcy. This gives you protection against debts that have arisen from medical treatment, and other hospitalization expenditure along with medicine overheads as well as nursing and physiotherapy costs. Thus you can easily take care of these unsecured debts though bankruptcy.
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This entry was posted on Tuesday, December 8th, 2009 at 10:14 pm and is filed under bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
