English to Chinese BETA
English to French
English to German
English to Italian
English to Japanese BETA
English to Korean BETA
English to Russian BETA 
English to Spanish
With the recent economic downturn, seems like filing bankruptcy seems to be the only option people can think of. Strapped of cash and their jobs, and with dues and debts mounting, a lot more people are lining up to file the Chapters on their names. No wonder, the Federal Government has been forced to sit back and take corrective actions by making new bankruptcy laws.
No one would want a bankrupt state where more than 90% individuals go bankrupt. This possibly prompted the Federal Government to bring about a change in the laws of Chapter 7.
So, what is Chapter 7 Bankruptcy all about?
Understanding Chapter 7 Bankruptcy becomes of critical essence for you. An individual filing for Chapter 7 is relieved of all his debts and financial obligations. Once an individual is declared bankrupt under Chapter 7, creditors can no longer pursue efforts to extract their dues from the individual.
What are the New Bankruptcy laws about Chapter 7?
New bankruptcy laws have changed some statutes of Chapter 7 Bankruptcy. Find below some new bankruptcy laws given for your benefit.
Restricted eligibility for filing for Chapter 7 Bankruptcy
Earlier, you could decide which chapter you would wish to file for. With the new bankruptcy laws, your monthly income would be measured against the median income of the state. You could file for Chapter 7 bankruptcy, if your income is lesser than the median income of the state.
Means Test
The objective of the Means test is to determine if you have enough money to handle your financial obligations. Your income is taken into one hand, and all other expenses are subtracted from the income. The remaining amount is compared with a standard amount that is used as a benchmark.
If the amount in your case is below the benchmark amount, you could file for Chapter 7. Chapter 7 bankruptcy essentially means liquidation, under which all your assets would be liquidated off to pay the debts of your creditors. Chapter 13 bankruptcy is repayment. The new statutes of the Federal Government of the USA strive to get a lot of people who are lining up to file for Chapter 7, to file for Chapter 13. This allows creditors to claim their monies back from the borrowers in a legal manner.
Whether Chapter 7 or Chapter 13, filing for bankruptcy is not a milestone event at all for any individual! With credit scores destroyed par recognition, it is a long and hard battle for them to lift themselves up.
You need to know all about the new bankruptcy laws before you even consider filing for bankruptcy. Visit here to find out more: http://www.creditcardbankruptcyinfo.info/New-Bankruptcy-Laws.html
Find out if you even qualify to file for bankruptcy.
Article Source: http://EzineArticles.com/?expert=Dale_P._Stewart
1 comment:
Due to the latest changes in bankruptcy laws, it is becoming very difficult for people to file bankruptcy. Due to these changes, people who are high income earners, who used to pay their debt at Chapter7 must now repay their debts at chapter13. To decide whether to use the chapter 7 or chapter 13 it all depends on the monthly income against the median income on the estate you are in.
Post a Comment