Bankruptcy rules changed
Changing bankruptcy rules has two aspects.
It is far more difficult to file a bankruptcy claim in chapter 7 and you can get a clean slate at all.
For companies that rely on issuing credits, the new Personal Bankruptcy Act reduces the number of personal bankruptcy applications to two figures from thousands. (In the short term).
However, a lawyer cooperating with an actual bankruptcy applicant is more seriously burdened with already failed customers, seriously defects in the new law to reduce the possibility of repaying debt to small and medium-sized enterprises I say there is.
And, of course, you charge high credit to a credit card company, and in the majority of cases, initially caused bankruptcy.
According to some financial experts, much of the debt cumulative is not the result of catching up with Jones and looking ahead.
80% of customers who are counseling monthly are credit card-related obligations and are a result of 6 to 8 cards, a fee of $ 32,000.
Consumer credit institutions say the new law provides a debt reduction strategy for people thinking to raise bankruptcy and curb abuse.
Under the new law, a person filing bankruptcy is required to receive credit counseling before and after the application for those planned to be charged.
So now, consumers will know the strengths and weaknesses of bankruptcy declarations. However, it seems to be purely another expenses for those who are already financially nervous.
In general people who raise bankruptcy are strictly confronted with temporary financial disasters such as medical expenses, dismissal, divorce, gambling debt and other crises, not excessive people.
Before filing for bankruptcy it is necessary to complete credit counseling at an agency approved by the US Management Committee.
This credit counseling is designed to help you decide whether bankruptcy is right or not.
After completing the bankruptcy, you need to participate in another credit counseling session.
These are new laws, and the law did not need to receive counseling before and after the bankruptcy before this law was passed.
Secondly, in older law you can apply based on Chapter 7 or Chapter 13. Under the new law, the court examines your monthly income and applies the means test on the state you live in. If your income is less than or equal to the middle income, you can submit Chapter 7. Chapter 7 will give you a clean slate.
This middle income ranges from 28 thousand dollars in Missouri to 56 thousand dollars in Alaska.
If your income is bigger, you may be obliged to submit Chapter 13 unless you can prove that you do not have enough disposable income.
In Chapter 13 you can not get a clean slate, but you have to pay your debt.
Also, your lawyer must personally prove that your bankruptcy filing is accurate. This will increase the work of lawyers and increase the attorney's fee.
Advantages of bankruptcy declaration:
Legal protection from creditors
Manage all or most debt
In some cases, you can maintain your home or car
It may stop complete fiscal ruin
Provide a new start
Disadvantage of bankruptcy declaration:
Bad credit
It may be necessary to repay partial liabilities and repay collateral to creditors
You may lose assets including houses and cars (if your home is worth more than a certain amount).
Bankruptcy became a public record,
It will remain in the credit record for 7-10 years
Columbia lawyer Gwen Froeschner Hart said, "In the past bankruptcy brought a new start to Filer:" The new federal law provides a language to support creditors "
Analysis of most people's credit card costs often includes senior citizens, low income earners or fixed income medical expenses and daily expenses.
According to records, 50% of credit card holders do not make full credit card payment every month.
Since 33% of the population can not join medical insurance, you need to purchase prescription medicine.
With recent Medicaid reduction and strict bankruptcy law, I know what will happen to these people.
Some say that consumers are abusing creditors.
Irony is that a credit card company begs for customers and offers a large amount of unsecured credits and at the same time lobbying for stricter debt management.
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