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What To
Consider When Filing for Personal Bankruptcy
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by:
Roy Barker
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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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