Major
changes that will affect those filing Chapter 7 or 13 include:
Before someone can
file bankruptcy for either Chapter 7 or Chapter 13, they must
complete credit counseling with an agency approved by the United
States Trustee’s office. Before their bankruptcy case is over, they must attend another counseling
session, this time to learn personal financial management.
Only after a person
submits proof to the court that they fulfilled this requirement
can they get a bankruptcy discharge, preventing most of their
creditors from collecting debts incurred before the filing of
the bankruptcy petition.
A person’s
income is a factor in determining whether a person files for
Chapter 7 or Chapter 13. The higher their income, the more likely
they will have to file for Chapter 13. A means test will be used
to calculate their “disposable income”.
Don't
wait any longer, please Contact a Bankruptcy Lawyer Today to advise you on your bankruptcy options.
There are fewer “Automatic
Stay” protections under the new law. Protections designed to delay or stop eviction
actions, legal actions, or divorce proceedings have been narrowed
under the new law.
Under the new law,
a person must live in a state for at least two years prior to
filing in order to use that state’s exemption laws. Otherwise, they must use the exemptions available in the state
where the person used to live for the greater part of 180 days
prior to filing.
Chapter 13 filers
have to hand over all of their disposable income, but now they
have to calculate their disposable income using allowed expense
amounts dictated by the IRS — not their actual expenses — if their income is higher than the median in their state. A person looking to
file Ch. 7 or 13 must provide proof of their income in the
form of federal tax returns and pay stubs. A chapter 7 debtor
cannot
receive a discharge if a prior discharge was received within
8 years of the new filing.
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