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What to Consider when Filing for Personal
Bankruptcy |
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by: Roy
Barker |
President Bush in April
signed into law The Bankruptcy Abuse and Consumer Protection Act.
This bill promises many changes to law, and will make it more
difficult for the average person in financial trouble to have debts
removed with bankruptcy. Recent social and economic changes indicate
that those considering a bankruptcy should do so now, as the queue
is getting longer.
It will be now be harder to file under
Chapter 7 of the code, which allows the courts to wave consumer debt
and give the debtor a new start. Filings posted will be tested and
those who have a decent income it seems will have to file under a
more strenuous Chapter 13, which demands repayment by installments
and the assistance of a lawyer. Now looming, bankruptcy filings are
not only higher than they were previously, but are also higher than
expected. Acros the country, filings are substantially higher than
last year, and some bankruptcy practitioners say that their business
has increased dramatically.
To make it more confusing is
another law, that requires credit card companies to establish a
payment schedule that permits consumers to repay debts in amended
installments. Since early year, most credit card providers have
doubled their minimum payments. An average person with say $12,000
in credit card debt, will have approximate monthly payment increases
from between $150 to $450, an increase most people can ill afford.
This increase in bankruptcy filings has overwhelmed
bankruptcy lawyers, who face a burden of being liable for false
information filed by clients once the new law takes effect.
Certainly an unwelcome change. This additional liability, together
with the additional tasks, has prompted many lawyers to raise fees
subsstantally over the same time as last year.
What does
this mean for bad debt? From here on, bankruptcy filings will be
more confusing, complicated and costly. The system is already
overloaded with bankruptcy cases. If you suspect you're in the
bankruptcy category, you should move on it now. Waiting even another
day could be too late.
About the author:
A contribution
from Roy Barker owner and publisher of www.bankruptcy-aid.coma resource for attorneys and
anyone seeking information.
Circulated by Article Emporium
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