How hard is it to file for bankrupcy with the new law?

Question

Anyone know the procedures?

Answer 1

It is still relatively easy if you are under your states median income, median incomes for your state can vary this is from the npr article

'The U.S. average for median household income was $42,654 a year for 2001-2002. State median incomes range from $29,752 in West Virginia and $30,761 in Mississippi to $53,791 in Connecticut and $55,525 in Alaska.'

if you are over the median income than a bankruptcy judge will determine if

'Those with income above the state's median income who can pay at least $6,000 over five years -- $100 a month -- will be forced into Chapter 13, where a judge will then order a repayment plan.' (from npr again)

bankruptcy for anyone now includes some mandated financial counseling which typically ranges from 90 minutes to more before and after the procedings which you pay for.

Both of the conditions above apply to chapter 7 bankruptcy for which you basically get a fresh start, only bills like stundent loans, taxes, and child support or divorce will remain. Chapter 7 protects your house and equity in it, but some assets will be sold to pay your debt.

If you don't qualify for chap 7 you will be in chap 13 which includes some repayment overtime and some new things under the new law, so if you have lower income it should not be much different, but in either case the first step and really all the steps start with contacting a a bankruptcy attorney, check your yellow pages, there are not any do it yourself bankrupcies as far as I know.

I did credit counseling through http://www.cccs.net/ years ago and paid of 13000 in credit card debt, Credit couneling which reduces interest rates on your cards, some down to zero, has minimal effect on your credit and pays your debts in full. I know that bankruptcy is the only alternative for some people so good luck in whatever you chose

Here is a link to a story about the new laws

http://ezinearticles.com/?Bankruptcy:-What-the-New-Law-Means-to-You&id=50293

Answer 2

Speaking as a nationally known personal credit score expert (book, radio shows, newspaper column)...

It is extremely difficult to qualify for a Chapter 7 bankruptcy which would wipe out your debt. Doing Chapter 13 BK is horrible, because not only do you pay back much or all of what you owe, there are added monthly costs as well. Further, that kind of BK stays on the credit reports for 13 years, longer than any other bad credit.

Answer 3

We have a discussion on Bankruptcy at:
http://www.allsolutionsnetwork.com/cgi-bin/d.cgi/LG9905/Bankruptcy.htm

We have the forms needed at:
http://www.allsolutionsnetwork.com/cgi-bin/d.cgi/LG9905/Bankruptcy.htm
The forms are free.
http://www.allsolutionsnetwork.com/cgi-bin/d.cgi/LG9905/Bankruptcy.htm