Recently, the new bankruptcy law came into effect and dramatically modified the bankruptcy filing laws. Read this post, which sets out the specifics of the new bankruptcy law, if you are not sure exactly what these reforms mean for you. Have a look at Attorney Harry C Kaufman for more info on this.
A variety of changes to the filing process have been brought about by the current bankruptcy legislation. The big ones are here:
The new bankruptcy law requires that someone who wishes to file bankruptcy with an entity licensed by the office of the United States Trustee must complete credit counseling. Filers must attend yet another therapy session after the bankruptcy case has concluded to learn more about personal financial management.
It has been possible in the past to choose between Chapter 7 or Chapter 13 bankruptcy filings. Under the current bankruptcy statute, Chapter 7 eligibility for filing is dependent on sales. The average income of a filer for the six months prior to filing for bankruptcy must be below the median income of their state.
Values of Land
Under the old bankruptcy statute, those who applied for Chapter 7 bankruptcy were entitled to put a value on their personal property on the basis of what they could sell it at an auction for. The new bankruptcy law demands that property be priced at a substitute value now. This brings increased value on the property and guarantees that a trustee can take and sell their property to more filers.
Exemptions from a Jurisdiction
Under the current bankruptcy statute, exemptions will extend to your state only if you have been residing in the state for two years. If you’ve been in the state for less than two years, you would be disqualified from the state you previously resided in.