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How has filing chapter 7 bankruptcy changed over the past year?

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2005-09-29 23:49:45
2005-09-29 23:49:45

The new bankruptcy reform will go into effect in October (I believe it is the 17th). When that happens it will become almost impossible for the average citizen to file a "7". BK attorneys are working almost non-stop to keep up with the rush of people trying to beat the reform deadline.

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cant you sign it over to someone you trust like a wife , husband etc.... so it cant be taken

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Chapter 7 bankruptcy comes with advantages as well as disadvantages. As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over.It is true that filing for bankruptcy ruins a debtor's credit from a number of years and may cause embarrassment. However, incurring more debt and facing the harassing phone calls, letters and potential lawsuits from creditors can have the same effect. Filing for bankruptcy will allow many debtors to get started sooner on rebuilding their credit in peace

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Why aren't you asking your bankruptcy attorney? It depends on the amount and what the award is for. And the details may depend on what bankruptcy court your 13 is in. You may be able to use the money to prepay your 13 plan and get out of bankruptcy. The money would go to you, not the bankruptcy attorney (unless you owe the attorney money). What claim the trustee would have is the issue.


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