Atlanta Bankruptcy Attorney
Bankruptcy Reform
When you are considering filing for bankruptcy, you may wonder how the laws have changed over the years and if these changes will have an effect on your situation. The most recent major bankruptcy reform changes took place in 2005. While some people claim that this has made filing for bankruptcy much harder, it all depends on an individual's specific circumstances. If you need help learning how the changes have affected you, your Atlanta bankruptcy attorney can help.
The Bankruptcy Abuse Prevention and Consumer Protection Act was created as a way to help prevent the abuse of the bankruptcy system. Most of the major changes involve Chapter 7 bankruptcies, as these are the most forgiving to debtors and thus, subject to the most abuse. The biggest change to Chapter 7 is the law regarding eligibility to file for this form of bankruptcy. If you are below the median income level of your state, based on your family size, you will not be affected by this issue, but if you make more than this amount, anyone may file a motion to file abuse against you and you must meet a means test to determine your eligibility to file for bankruptcy.
The means test does not just take your income into your account, but also allows a specific set of deductions from your earnings as created by the IRS. Exemptions include living expenses, insurance, school expenses, charitable contributions and more. If you need more help understanding these deductions, your Atlanta bankruptcy lawyer can help.
The other biggest change in the bankruptcy code is the requirement that all debtors who file must go through credit counseling before their debts will be discharged. The counselor must belong to an approved non-profit agency approved by your bankruptcy trustee. After a short briefing with your counselor within six months of filing, you must then complete a financial management course. If you need help finding approved counselors and courses, your Atlanta bankruptcy attorney can provide advice on selecting the right people for your needs.
The last major change of the code involves how long you must wait before refilling for bankruptcy. You may not file for Chapter 7 protection until eight years after your last Chapter 7 filing.
There are other changes in the code, but many of these only affect select people. If you are affected by these revisions, your Atlanta bankruptcy lawyer will let you know. If you have any questions about these changes or about the process in general, please call The Stalder Law Group today and schedule your free initial consultation.
If you have any questions, contact an experienced Atlanta bankruptcy attorney.
