New Chapter 13 Bankruptcy Law

Are you considering filing for bankruptcy, and need to know how the new Chapter 13 bankruptcy law would affect you?

Chapter 13 bankruptcy may be a viable option for you, but it is important to speak with a Real Estate Lawyer, especially if you are facing foreclosure and the loss of your home. The new Chapter 13 bankruptcy law took effect on October 17, 2005. It has made the process of seeking protection extra challenging for most people. There are even provisions which preclude some individuals from applying for certain bankruptcy protections based upon income.

The new Chapter 13 bankruptcy law contains provisions and restrictions that make the process far more difficult. Contact a Real Estate Lawyer for an initial consultation on the new Chapter 13 bankruptcy law.

New Chapter 13 Bankruptcy Law Changes:

• Counseling Requirements: You must complete credit counseling before filing for bankruptcy. Counseling is required even if a repayment plan is not practical, or there are disputed debts.
• Automatic Stay: Under the previous law an automatic stay would stop any and all legal proceedings against you. The new law has eliminated the automatic stay for evictions, child support, and divorce proceedings.
• Financial Management: After the conclusion of bankruptcy proceeding, prior to any debt being discharged, you must participate in a financial management education program.
• Means Test: If your current monthly income is greater than the median income in your state, and you can afford to pay $100 per month toward paying your debt, you would be precluded from filing a Chapter 7 bankruptcy.
• Tax Returns: Under the new law, you must show proof of income by providing federal tax returns from the previous tax year. If you have not paid the taxes, you must do so before you would be allowed to file any type of bankruptcy.

You need to be aware of the exact implications bankruptcy will have on you. Consult with a Real Estate Lawyer to learn about what will be expect of you, and how to best prepare yourself. You may need to resort to bankruptcy to save your home from foreclosure. Seek help now before it is too late.

See Also:

• Stop Foreclosure
• Short Sale

The new Chapter 13 bankruptcy law contains provisions and restrictions that make the process far more difficult. Contact a Real Estate Lawyer for an initial consultation on the new Chapter 13 bankruptcy law.

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