NEW LAWS

New Bankruptcy Law

Over the past several years, Congress has been urged by banking and credit card industries to pass legislation that would hinder consumers from filing bankruptcy under Chapter 7, a type of bankruptcy which allows individuals who qualify to elminate or discharge all of their unsecured debt (except for certain categories of debts, such as taxes, child support and student loans). On april 20, 2005 President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act, which took effect on October 17, 2005.

Despite rumors to that effect, THE NEW LAW DOES NOT ELIMINATE CHAPTER 7, nore does it prevent individuals from getting rid of credit card debt. the truth i you can do almost everything under the new law that you could under the old law. Over 90% of individuals can get the exact same relief under the new law as they could under the old law.

So what has changed under the new law? The main difference is that there are additinal paperwork requirements. You will need to document your income and expenses. In some cases, you will need to provide proff (such as pay records) of your income for the 6 months prior to filing. there is also a requirement that individuals filing bankruptcy undergo credit counseling both before and after they file. However, this can be done either over the phone or over the internet, so you will not have to leave your home to do it. if you do not have internet access, we can provide it for you at our offices.

Another change under the new law is that there is now a mathmatical formula to determine whether one qualifies for Chapter 7 or would need to file under Chapter 13. This is called the "Means Test". In order to qualify for Chapter 7 under the Means Test, one must either have gross annual income that is below the state median income level or have income above the state median income level but have enough allowable expenses so that the remaining "Disposible Income" is insufficient to pay creditors at least $6,000.00 over 5 years. Over 90% of the individuals we have interviewed qualify for Chapter 7 under the Means Test. Contact our office today for a free Means Test analysis.


24 YEARS EXPERIENCE IN CONSUMER BANKRUPTCY DEBT REORGANIZATION LICENSED IN KENTUCKY & INDIANA MEMBER OF AMERICAN BANKRUPTCY INSTITUTE
HOME ATTORNEY PROFILE NEW LAWS FREQUENTLY ASKED QUESTIONS CHAPTER 7 CHAPTER 13 CLIENT QUESTIONNAIRE DOCUMENTS NEEDED 7 MISTAKES TO AVOID	New Bankruptcy Law Over the past several years, Congress has been urged by banking and credit card industries to pass legislation that would hinder consumers from filing bankruptcy under Chapter 7, a type of bankruptcy which allows individuals who qualify to elminate or discharge all of their unsecured debt (except for certain categories of debts, such as taxes, child support and student loans). On april 20, 2005 President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act, which took effect on October 17, 2005. Despite rumors to that effect, THE NEW LAW DOES NOT ELIMINATE CHAPTER 7, nore does it prevent individuals from getting rid of credit card debt. the truth i you can do almost everything under the new law that you could under the old law. Over 90% of individuals can get the exact same relief under the new law as they could under the old law. So what has changed under the new law? The main difference is that there are additinal paperwork requirements. You will need to document your income and expenses. In some cases, you will need to provide proff (such as pay records) of your income for the 6 months prior to filing. there is also a requirement that individuals filing bankruptcy undergo credit counseling both before and after they file. However, this can be done either over the phone or over the internet, so you will not have to leave your home to do it. if you do not have internet access, we can provide it for you at our offices. Another change under the new law is that there is now a mathmatical formula to determine whether one qualifies for Chapter 7 or would need to file under Chapter 13. This is called the "Means Test". In order to qualify for Chapter 7 under the Means Test, one must either have gross annual income that is below the state median income level or have income above the state median income level but have enough allowable expenses so that the remaining "Disposible Income" is insufficient to pay creditors at least $6,000.00 over 5 years. Over 90% of the individuals we have interviewed qualify for Chapter 7 under the Means Test. Contact our office today for a free Means Test analysis.	Richard A. Schwartz 6040 Dutchmans Lane Two Paragon Centre, Suite 220 Louisville, KY 40219 (502)485-9200 (502)485-9220 rick@ksm-law.com Call Today - Free Consultation! EVENING & WEEKEND APPOINTMENTS AVAILABLE
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