Bankruptcy laws

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jonathan
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Subject: Bankruptcy laws

Fri Jun 19, 2009 10:09 am

Hi All,

I am too much in debt and tired of phone calls from the collection agencies. They also call my parents at odd hours. I am unemployed and can't find any ways to get out of debt. My friends suggested a repayment plan but i cannot afford it . I am planing to file for bankruptcy. Has anyone heard about new bankruptcy laws? I have also heard that these new bankruptcy laws will make filing for bankruptcy very difficult.

rachael

Joined: 11 May 2009
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Posts: 234

6581 Magic Points

Fri Jun 19, 2009 11:03 am

Hi jonathan,

Filing for bankruptcy under Ch 7, can be a bit difficult now because of the new bankruptcy rules. Filing for bankruptcy under Ch 7 involves selling off your property and assets, to pay down the debt (also known as liquidation). You will know whether you are eligible for Ch 7, by going through a "means test". The "means test" result is statistically determined. That is if your current monthly salary is less than or equal to, the average income of a family (of the same size as yours) in your state, you are eligible for bankruptcy under Ch 7.

Under the new laws, you are also required to take credit counseling, before filing for bankruptcy (for both Ch 7 and Ch 13) with any agency approved by US Trustee's Office. The credit counselor will review your debts and see if there are any chances to get out of the debt, without filing for bankruptcy.
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Looking forward to a debt-free life.

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* Disclosures:

Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.