Learn A Little More About The New Bankruptcy Law
If you are one of those people who are current in debt and are thinking of using the option of bankruptcy, you should take some time and learn something about the new federal consumer bankruptcy law.
Why this new reform:
The new bankruptcy law is introduced due to many different reasons. The recent escalation of bankruptcy filing was the major reason why this new bankruptcy law is introduced. However, there are some other reasons as well, such as losses associated with bankruptcy filings, debtor’s ability to pay the debt, and potential bankruptcy abuse.
The new bankruptcy law:
There are certain changes in new bankruptcy law. With this new law in place, it has become difficult for people to file under Chapter 7. Now, people will have to go through a ‘means test’ to qualify for Chapter 7 bankruptcy. Along with this particular change, there are some others as well. Mandatory credit counseling, requirement of proof of income and tax returns, priority of unpaid child support, and mandatory financial management education are few prominent changes in the new bankruptcy law.
The crux of the matter is that there are some big changes in the new bankruptcy law. These changes will help some filers, but some will also get affected in a negative way. But, one thing is for sure that now it will be slightly more difficult to abuse the bankruptcy law. And, of course, you will find more filings under Chapter 13, where people have to repay their debt from their income.