Will The New Bankruptcy Law Affect You?

At that point the new law may require the person to file a Chapter 13 where they will need to make payments to the creditor.

What is a Chapter 7? A Chapter 7 filing is when all unsecured debt is discharged. For example, unsecured debt would include some of the following: credit cards, medical bills and personal loans.

What is a Chapter 13? A Chapter 13 is a reorganizational plan wherein a consumer keeps assets and makes an arrangement with the creditor to pay their debts within a three to five year period.

Under the new bankruptcy law, will the requirements under a Chapter 13 filing be tough? Yes. A person in debt, must pay their unsecured debt in full including the interest.

If the person does not pay the unsecured debt in full including the interest, the person's income which is disposable, must be contributed to the plan for the minimum term of up to five years.

What are some of the other requirements fo the new bankruptcy law? mandatory credit counseling is required before and after the consumer files for bankruptcy and proof of income must be shown by a consumer by providing a copy of the latest federal tax return filed.

Is there anything else I need to know about the new bankruptcy law? Yes. The new law will eliminate how the automatic stay is used. The automatic stay under the old bankruptcy law is used to stop most of the actions of collectors and persons filing lawsuits against a debtor who files for bankruptcy.

However, under the new law, filing for bankruptcy will not stop you from being evicted, suspension/restriction of your driver's license, or lawsuits being filed against you.

How Changes In Bankruptcy Law May Affect You

How To Avoid Bankruptcy

After Bankruptcy

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