BANKRUPTCY REFORM BILL SET TO TAKE EFFECT
The U.S. Congress has passed a "reform" Bankruptcy Bill. The law has been the darling of banks and credit card companies, who spent over $40 million in lobbying to get the changes through. What effect it has on a specific consumer will depend on the facts of each case, but the law makes it more expensive and more complicated to file bankruptcy. Debtors will have to get training in use of credit and financial planning in order to get a discharge, they will have to meet a fixed test of income and expenses, and debtor's counsel will be open to fines and penalties if the numbers aren't accurate.
The new law will look at people based on income considered the median in each state, and force Chapter 13 on those according to whether their income exceeds that. In Louisiana we expect that number to be reasonably high so that most clients will still qualify for Chapter 7. One new requirement is that people will have to attend some debtor education prior to filing their case. This is similar to what the Chapter 13 Trustee does now after filing, but will now be required prior to filing.
The complex changes are not going to prevent us from continuing our 25 years of service to consumer debtors.
We will stay current on the changes in the law and be ready to file under whatever conditions the Congress has imposed.
New law takes effect 12:01 am Monday October 17, 2005, and any filings after Sunday Midnight are subject to its provisions.
Will you still be able to file?
Before filing you will have to attend "debtor orientation"
Chapter 13 may require more information
Filing before the effective date would not be subject to the new rules, except that in a Chapter 13 some periodic reporting and changes might be required..
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THE U.S. Congress and President Bush have authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.