Will New Bankruptcy Laws Benefit You?
There are 2 parties to changes in bankruptcy rules.
It will be much more difficult to submit bankruptcy according to chapter 7 and to receive completely pure slate.
For firms, relying on the credit edition, the new personal legislation on bankruptcy does big, reducing personal requirements of bankruptcy from thousands to double figures. (Soon).
However, the lawyers working with the actual people, declaring bankruptcy, say that the new law is seriously spoiled, because he puts on more financial difficulties, already broke clients and reduces potential debt payment to the enterprises of small business.
And then certainly, you have the companies of a credit card raising high interest rates which in quite many cases caused bankruptcy first.
According to some financial experts, the most part of debt people, result not backlogs from Joneses and not the assumption collects.
For 80 % of clients to which recommended every month, a duty - the connected credit card and averages of $32,000 - result of six - eight cards.
The organizations of the consumer credit say that the new law provides strategy of reducing a duty what consider bankruptcy registration, and bridles abuse.
According to the new law it became the requirement that the person submitting bankruptcy, received consultations on the credits and before and after registration for which that person will be accused.
Thus, now the consumer then would know advantages and inconveniences of the announcement of bankruptcy. Nevertheless it seems simply other expense for already financially underlined person.
The people submitting bankruptcy in general, aren't super spend thrifts, but simply facing temporary financial disasters, such as medical expenses, layoffs, divorce, putting debts or other crises.
Before you can submit bankruptcy, you are obliged to finish now consultations on the credits with the agency approved by the American office of Trustees.
These consultations on the credits are developed to help you to define, whether the corresponding bankruptcy.
As soon as you finish the bankruptcy, the law demands, that you visited other session of consultations on the credits.
These are new requirements before this law was adopted, the law didn't demand, that the person passed the recommendation or before or after bankruptcy registration.
Secondly, according to the old law, the person could solve a tax according to Chapter 7 or Chapter 13. According to the new law, the court will look at your monthly income and to apply the check of financial position concerning the state in which you live. If your income is less than or is equal to the average income then, to you will allow to submit Chapter 7 which actually will give you pure slate.