Bankruptcy Law

If you are considering filing Bankruptcy it is extremely important that you familiarize yourself with bankruptcy law and the recent changes to the backruptcy code in the United States.

The New Bankruptcy Laws

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, as it is formally known, has made filing bankruptcy a considerably more tedious and time consuming process than it already was. However, the end result is an increased and direct benefit to the debtor. Some particular changes to note are:

  • some filers with higher incomes aren't allowed to file Chapter 7
  • All debtors must under go credit counselling through an approved course provider
  • Bankruptcy attorneys must file additional paperwork providing more detailed documentation of income
  • Disposable income measured through a standarized Means Test

These are just some of the many changes made to bankruptcy law in the U.S. The rules and regulations regarding bankruptcy filings are many and complex. You should seek the professional consultation and advice of an experienced bankruptcy attorney in your area as you consider filing for bankruptcy.


Bankruptcy Term of the Day

Abuse

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), if a debtor does not rebut an abuse, a presumption of abuse can arise under the new Chapter 7 Means Test.

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Latest Bankruptcy Question

Is it wrong to file bankruptcy?

Bankruptcy is not wrong for those who have made an honest effort to pay creditors.

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