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In October 2005, President George W. Bush passed the Bankruptcy Abuse and Consumer Protections act that made it more difficult for consumers to have debts discharged through bankruptcy. This affected both Chapter 7 and Chapter 13 bankruptcy, the two types most often filed by individual debtors.
Specific Changes in Bankruptcy QualificationChapter 7 bankruptcy eliminates most consumer debts, with the exception of government student loans, overdue taxes, alimony and child support. In order to qualify for Chapter 7, your personal income must fall below the median income in your state of residence. The purpose of this means test is to determine if you have at least $100 a month available to repay creditors. If your income is lower than your state median, you must produce a list of your current debts, monthly expenses and income. Both your income and your debts will be evaluated for the six- month period immediately preceding your bankruptcy filing. You must present your previous year's tax return and paystubs as proof of your income.
If you do not pass the means test, you are ineligible to file for Chapter 7 bankruptcy. However, you may still be eligible to file Chapter 13, which is a modified repayment plan for your creditors. Under the laws of Chapter 13, you have up to five years to repay your creditors based on a repayment schedule determined by a bankruptcy trustee. The amounts you are required to pay are determined from an expenses to income formula used by the bankruptcy court.
Another change brought about by the bankruptcy reform laws is the requirement for credit counseling prior to your bankruptcy being discharged. Your bankruptcy lawyer will provide you with a list of approved credit counseling agencies where you can complete this requirement. You are also required to obtain post-filing credit counseling and submit a certificate of completion to your bankruptcy lawyer.
Changes in the Automatic Stay Process and Child Support CollectionPrior to 2005, filing bankruptcy meant that most people and organizations had to stop collection activity against you. Since that time, the automatic stay no longer applies to eviction notices, divorce proceedings, suspension of your driver's license or payment of child support. If you owe past due child support, the person you owe it to will be given top priority over your other creditors to receive payment in either type of filing.
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When did Congress last update the bankruptcy laws?
In 2005 the U.S. Congress enacted profound changes to the Bankruptcy Reform Act of 1978. Known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,
Which bankruptcy chapter was most affected by the change in bankruptcy laws in 2005?
The most significant change to the 1978 statute concerns consumer bankruptcy under the Chapter 7 liquidation provisions.
When did the bankruptcy rules change?
There are some new laws that deal with bankruptcy that were passed in 2005. The change the way that one has to go about declaring bankruptcy and how it should be solved.
What are the release dates for Urban Bankruptcy - 2005?
Urban Bankruptcy - 2005 was released on: USA: 12 June 2005 (Waterfront Film Festival)
What are homestead act provisions?
Homestead Act provisions vary from state to state but generally prohibit the siezure of a primary residence by creditors.
Can you avoid criminal charges by filing bankruptcy?
No. Bankruptcy is a civil act.
Is a policy valid if it does not conform to the uniform provisions act?
Will be construed as if it conformed to the Act.
Provisions to the Brady Act 2006?
There's no such thing as the Brady Act of 2006
What were the main provisions of the Stamp Act of 1765?
see stamp act of 1765
What is the bankruptcy reform act of 1994?
The bankruptcy reform of 1994 is typically isThe Act of Bankruptcy has often emerged from times of economic crisis, and had generally made filing for bankruptcy easier. Congress passed the Acts of 1898, 1933, 1934, 1978, 2001 and 2009 in response to depression, recession or widespread financial panic. In the 2005 act, Congress made some bankruptcy filings more difficult. The most substantial recent act, the Bankruptcy Act of 1994, helped debtors and creditors alike. Creditors and some members of Congress have objected to the extent of protection offered in Chapter 13 of the 1994 act. It is required to pay back at least a portion of their debts. Sometime you will find it difficult to file bankruptcy. Bankruptcy is a legal process that relieves debtors of the responsibility of paying their debt, or to protect them while they repay a loan that is not backed by pledged assets. In 1988, the original bankruptcy was put in law and reform at 1994. There are two main bankruptcies. They are; Involuntary and voluntary. Involuntary will make you file bankruptcy and voluntary is the most common kind.
Can you file bankruptcy on credit cards that are not in your name but you are responsible for?
check Federal Bankruptcy act 801.3
When was The Bankruptcy Protection Fund Limited created?
The Bankruptcy Protection Fund Limited was created in 2005.
