The laws really haven't changed that much, there are just more hoops you would have to jump through before you can file bankruptcy. And the attorney fees will vary depending on the attorney who file the case for you and what the bankruptcy administrator will allow.
The major change with the bankruptcy laws is the means test. This will determine whether you can file a chapter 7 bankruptcy or whether you will have to file a chapter 13 debt repayment plan. An attorney would calculate the average gross income for the last six months for you and members of your household. If your income is below median for the county you live in, you will not have any problems filing for bankruptcy. If your income is above the average, then the attorney will deduct your expenses using IRS standards. Once the deductions have been calculated, you may or may not be able to file for chapter 7. If you do not pass the means test you may have to wait to file.
You should consult an attorney in your area to get more details and to see if you would qualify.
2006-12-30 15:37:35
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answer #1
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answered by Anonymous
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It depends upon the State you live in for the specific laws of your region. And, as far as the costs, that too will depend upon your region. Yes, most bankruptcy laws are federal laws, but sttae and regional laws apply as well. It would also depend upon your chapter - a Chapter 7 - which is the straight bankruptcy - no payback program - in western new york it costs $299 to file; a Chapter 13 - which is a repayment program over a period of months is $274 to file. You should contact your local bar association and ask them for a referral. If you qualify, you might be able to be represented "pro bono" which means that you would not be charged an attorney's fee. You can also contact your local legal aid office and see what they say. Good luck :)
By the way - the guy above that said you cannot file if you make more than $30,000 is wrong - I've filed tons of Petitions and I have worked for a bankruptcy Trustee.
2006-12-29 11:44:46
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answer #2
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answered by Tammy C 4
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I would consult with a BK attorney. How much they charge depends on quite a bit.
I don't think $30,000 is a magic number. It may have been in that gentleman's case, but there is no magic income number since the reason for bankruptcy differs, which brings me to my next point: just because someone has filed bankruptcy, does not mean they are a deadbeat trying to get out of their debts. Perhaps you got sick, maybe with cancer, and now your income is gone and the medical bills are piling up. Or maybe you were hurt on the job and can no longer work to sustain your income, and once again, need to protect yourself.
Sorry for the rant, I just hate when people generalize or stereotype without all of the knowledge.
2006-12-29 11:52:25
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answer #3
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answered by Joe L 3
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The first action you must take is to obtain credit counseling. This must be done before you can file a chapter 7 bankruptcy. Cost vary with the legal resources used. Personally, I would try to avoid bankruptcy. Many creditors will abate interest and reduce the amount owed if you can submit a payment plan.
2006-12-29 11:50:40
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answer #4
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answered by david42 5
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Pay your bills. You made the debt. You must own the debt. Find a way to consolidate your debt and get an extra job. You were irresponsible, you must mature and step up to the plate and pay your way. Do not expect others who work hard to pay your way. When a person files bankruptcy, we all pay. Prices go up and hard working people pay the cost for people who are irresponsible. Do not spend what you do not have. Live within your means. If you can't afford it today...you can't afford the credit payments with interest tomorrow! Time to grow up.
2006-12-29 11:42:40
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answer #5
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answered by Shayna 6
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You cannot make more than 30,000.00 a year in order to claim bankruptcy on credit cards. That is the newest piece of info I have received from my tax attorney.
2006-12-29 11:41:13
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answer #6
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answered by renew69 2
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