Are New Bankruptcy Laws Going To Help You?

By: Frank Hague
There are 2 sides to the changes in bankruptcy rules. It will be a lot harder to file bankruptcy under chapter 7 and get a totally clean slate.

For businesses, relying on issuing credit, the new personal bankruptcy law is doing great, reducing personal bankruptcy claims from the thousands to double digits.(In the short run).

However, lawyers working with the actual people filing for bankruptcy say that the new law is seriously flawed because it puts more financial burdens on already broke clients and reduces potential debt repayment to small businesses.

And then of course you have the credit card companies charging high interest rates which in quite a few cases caused the bankruptcy in the first place.
According to some financial specialists, much of the debt people accumulate is a result of keeping up with the Joneses and not thinking ahead.

For 80% of clients counseled each month, the debt is credit card related and averages $32,000 - a result of six to eight cards. Consumer credit organizations say the new law provides debt-reducing strategies for those considering filing bankruptcy and curbs abuse.

Under the new law it has become a requirement that the person filing bankruptcy obtains credit counseling both before and after filing for which that person will be charged..

So now the consumer would then know the advantages and disadvantages of declaring bankruptcy. Yet it seems merely another expense for an already financially stressed individual.

People filing bankruptcy in general are not overspenders, but merely faced with temporary financial disasters such as medical costs, layoffs, a divorce, gambling debts or other crises. Before you can file bankruptcy,you are now required to complete credit counseling with an agency approved by the U.S. Trustees office.

This credit counseling is designed to help you determine whether or not bankruptcy is appropriate.

Once you complete your bankruptcy, the law requires you to attend another credit counseling session.

These are new requirements, before this law was passed the law did not require a person to go through counseling either before or after the filing of bankruptcy.

Second, under the old law, a person could decide to file under Chapter 7 or Chapter 13. Under the new law, the court will look at your monthly income and apply a means test relating to the state in which you live. If your income is less than or equal to the medium income then you will be allowed to file Chapter 7 which in effect will give you a clean slate.

This medium income can vary from $28,000 in Missouri to $56,000 in Alaska. If your income is greater, you may be forced to file Chapter 13 unless you can demonstrate you do not have enough disposable income.

Under Chapter 13 you will not get a clean slate but will have to make payments on your debts.

Also, your attorney now has to personally certify that your bankruptcy filing is accurate. This means more work for the attorney, with higher legal fees.

Advantages of declaring Bankruptcy:

Legal protection from creditors
Takes care of all or most debt
In some cases, can keep home and car
May stop complete financial ruin
Provides a fresh start

Disadvantages of declaring Bankruptcy:

Bad credit
May have to repay partial debt load and return collateral to creditors
May lose assets, including house and car (If the house is worth more than a certain amount).
Bankruptcy becomes public record, and
Remains on credit record for seven to 10 years

“In the past, a bankruptcy offered a fresh start for the filer,” said Columbia attorney Gwen Froeschner Hart. “The new federal legislation offers language directed at helping creditors.”

If you analyze credit card expenses for most people you'll see that they often include medical bills and day-to-day expenses for the elderly or those earning low or fixed incomes. Records show that 50% of credit card holders do not pay their full credit card bills every month.

33% of the population can't afford medical insurance so have to charge their prescription drugs.
With the recent Medicaid cuts and rigid bankruptcy legislation who knows what is going to happen to these people.

There are some who say consumers are abusing creditors. The irony is that credit card companies are begging for customers and offering large amounts of unsecured credit, yet at the same time, lobbying for stricter debt controls.

About the Author
Frank Hague is interested in anything to do with Bankruptcies

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=29430&ca=Finances

Tags: law, laws, personal laws, lawsuite

Defending Your Rights under the Employment Laws

by: Rainier Policarpio
With the changing times and increasing accounts of job-related disputes comes the need for various laws that focus on resolving these particular issues. Along with this, the employment force must be able to fully understand their rights under the pre-existing law provisions and utilize them to protect their own interests.

Specifically in Los Angeles, the workers are guaranteed of legal remedies and protection from abusive employers who fail to manage them lawfully. Here are some of the following rights and privileges that are somehow helpful for the employees who may have experienced employment discrimination or abuse:

Right against Discrimination

As stated under the California Government Code and Federal Code Title VII, it is unlawful to discriminate and/or harass workers based on their:

• Age

• Race, color or national origin

• Gender or pregnancy

• Religious affiliation

• Marital status

• Disability

In addition, as provided by the Labor Code, employers are not allowed to retaliate against their employees who:

• Uphold their rights for reasonable wages

• Filed their complaints regarding the unhealthy and/or hazardous work environment

• Asserted their rights for worker’s compensation

• Testify before the court, revealing the illegal activities in the company

• Involved themselves in other lawful activities not related to work such as political activity and skills enhancement trainings

Any employee who will experience these violations may file their case with the Equal Employment Opportunity Commission the California Division of Labor Standards Enforcement within six months prior to date when the discriminative act occurred.

Family and Medical Leave Act

Every employee may have the right to utilize a three-month leave without the fear of losing his or her job for the following reasons:

• Take care for a newly born baby or adopted child

• Provide attention for a family member who has a serious ailment or health condition

• Seek treatment for his or her own sickness

Organizing a Labor Union

Employers do not have to interfere in any manner regarding the formation of a labor union and any of its lawful activities. Unless these labor actions are being done in an orderly and under the limits of the law, the company owners cannot file any case against union members.

Any instance of employer interference or harassment related to this issue may be reported to the National Labor Relations Board within a period of 180 days.

Workplace Safety

To protect their workers from possible hazards in their workplace, the employers must provide them with adequate training seminars and programs on how to protect themselves on the job. If necessary, the companies must supply all the protective equipment and gears.

Employers disregarding this right of the workers may be brought to the Division of Occupational Safety and Health.

Right to Representation

All citizens, not just workers, who have been aggrieved, discriminated and/or harmed, have their basic right to legal represented. Therefore, in filing their respective claims and complaints, the affected employees may seek the assistance of Los Angeles employment law defenders who have the proper knowledge and skills in preserving their rights.

This is certainly beneficial, especially for those workers who do lack the any background about the laws that safeguard their welfare. To add, labor attorneys can help their clients in establishing a strong case against their illicit employers.

Please do visit our website at http://www.expertlosangelesattorney.com/EmploymentLaw.html and seek the assistance of our Los Angeles Employment Law defenders if you think any of your rights as a worker have been violated. Our expert Los Angeles attorneys will do their best to establish a winning case for you.



About The Author
Rainier Policarpio used to work in a publishing company as a writer and eventually became an associate editor. He dealt in writing instructional materials for secondary and tertiary students. His passion in writing inspired him to read a lot and subsequently enabled him to gain more knowledge and skills.

Tags: law, laws, personal laws, lawsuite