YOU CAN STILL FILE FOR BANKRUPTCY DEBT RELIEF!!!
Although the bankruptcy law has gone through a major change Bankruptcy Debt Relief is still available to protect people in financial need. Under the new law, it is still possible for you as well as other good, honest, hard-working people to get rid of unsecured debts, reorganize your financial affairs, stop repossession, stop foreclosure, stop creditor harassment, and keep bill collectors under control. If you qualify you can still file for bankruptcy debt relief under the new law and put yourself back in control of your financial future.
For almost eight years, the credit card industry pushed for a dramatic change to the bankruptcy laws. In response to their intense lobbying efforts and generous political contributions, they finally succeeded with The Bankruptcy Abuse Prevention & Consumer Protection Act. The changes were expected to make it much harder for consumers to file for bankruptcy and more difficult to eliminate certain types of debts. These changes to the bankruptcy laws became fully effective on October 17, 2005.
There are many people are under the impression that bankruptcy relief is no longer available since the changes to the law took effect. In fact, the new bankruptcy laws have had little effect on most people and in some cases, the new laws are even more favorable then they were before. There are many parts of the new law which are still fairly ambiguous and have been subject to multiple interpretations by various courts in different districts and jurisdictions. Like all newly enacted laws only through the test of time and case by case experience can the impact of a new law be truly measured. Due to this, there is some uncertainty about how the new law may impact your assets and particular financial situation.
If you have questions regarding more detailed or specific changes in the New Bankruptcy Law see Changes to the Personal Bankruptcy Law or contact The Law Offices of R.J.Atkinson,LLC for a free initial consultation to answer your questions about Changes in the New Bankruptcy Law which may impact your assets and particular financial situation in Bankruptcy.
Although filing for bankruptcy under the new law is a bit more time consuming and slightly more complicated due to the pre-filing requirements, consumer credit counseling, debtor education and bankruptcy means testing. Bankruptcy is still a viable form of Debt Relief.
If you are eligible YOU CAN STILL FILE FORE BANKRUPTCY DEBT RELIEF. Successfully restructuring your debt as well as reducing or eliminating your debt by filing bankruptcy under the new law is still possible with effective bankruptcy counsel.
What are some of the Changes in The New Bankruptcy Law?
Bankruptcy Means testing
If your household income exceeds the Texas State median income for a family your size, you may not be eligible to file for Chapter 7 Bankruptcy relief. There are special conditions and circumstances which may allow you to file Chapter 7 Bankruptcy anyway, however, you should seek the advice of an attorney to determine if your situation makes you eligible. If you cannot meet the requirements of The Bankruptcy Means Test then you will be required to repay a portion of your debts through a Chapter 13 Bankruptcy repayment plan.
Credit Counseling Requirement
Individuals filing for Bankruptcy Debt Relief must first attend a Credit Counseling session by an approved non-profit credit counseling agency. This Credit Counseling requirement was designed to offer Bankruptcy Alternatives to people with financial problems. Once a Bankruptcy case has been filed, debtors must attend a debtor education course or financial management seminar prior to receiving The Discharge in Bankruptcy.
Discharge of Certain Debts
The Discharge in Bankruptcy is the actual legal term for eliminating debts. Under the New Bankruptcy Law you may not be able to discharge debts that were used for cash advances, purchases of luxury goods, and other debts made within the months prior to filing bankruptcy. Additionally all debts attributable to employee wage claims or wages are no longer dischargeable. Debts that were considered education loans from private lenders, irregardless of whether the said loans were originally insured by the Federal government are not dischargeable and debts related to a marital property settlement as well as debts owed to a pension or retirement plan, are no longer dischargeable.
Audits For Accuracy
The Office of the United States Trustee who oversees the administration of all Bankruptcy cases is charged with ensuring the information contained in bankruptcy petitions, schedules, and statements is accurate. As such The Office of the United States Trustee will conduct random audits of bankruptcy information to ensure accuracy. Debtors and their attorneys are now required to check the information contained in the petition for accuracy, to disclose all required information, and can be held accountable for inaccurate information.
Increased Costs for filing Bankruptcy
The Bankruptcy Court’s filing fee for Chapter 7 Bankruptcy was increased from $209.00 to $299.00. The filing fee for a Chapter 13 Bankruptcy case was increased from $194.00 to $274.00. The filing fee for a Chapter 11 Bankruptcy case was increased to $1039.00.
Attorney’s fees vary in Bankruptcy cases depending on the type of Bankruptcy filed and the difficulty involved. Depending on the particular Bankruptcy Court District in Texas, attorney’s fees in a Chapter 13 Bankruptcy can be paid at a flat rate pursuant to the approved Local Bankruptcy Rules if available or by the hour. All attorney’s fees in a Chapter 13 Bankruptcy are subject to the Bankruptcy Court’s approval as was the case prior to the New Bankruptcy Law.
Attorney’s fees in Chapter 7 Bankruptcy cases tend to be controlled by the marketplace and are overseen by the United States Trustee’s Office. Attorney fees will vary from one attorney to the next depending on the attorneys’ experience, reputation, ability, and desirability of the case. Attorney fees also vary based on the complexity and nature of the case, the number of creditors involved, and whether the case involves consumer or business debts. Attorneys fees for Chapter 7 Bankruptcy cases have increased due to additional pre-filing requirements which now include attorney liability under the New Bankruptcy Law.
Other Changes
Many of the changes under the New Bankruptcy Law are technical in nature. Changes to the New Bankruptcy Law include attorney liability for accuracy of the Debtor’s petition, the automatic stay, and the time period between discharges in bankruptcy. All debtors are now required to provide more accurate documentation relating to their financial condition including details on income, assets, expenses, bills, tax returns and other financial information. If a debtor fails to timely provide the required documentation, their Bankruptcy case can be summarily dismissed. In addition to the documentation requirements, there are increased noticing requirements which were designed to protect creditors against violating the automatic stay. All Tax returns must now be filed timely in a Bankruptcy case and provided to the trustee and other taxing authorities. Creditors may also request copies of tax return of which the Debtor is required to provide upon their request.
If you have questions regarding more detailed or specific changes in the New Bankruptcy Law contact The Law Offices of R.J.Atkinson,LLC at 512-617-2899 for a free initial consultation to answer your questions about the New Bankruptcy Law. Whether you’re in Houston, San Antonio, Austin, or Dallas, we may be able to assist you in filing for Bankruptcy Debt relief under The New Bankruptcy Law. Don’t lose everything. Call the The Law Offices of R.J.Atkinson,LLC at 512-617-2899 today.
