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The New Bankruptcy Laws

The BACPA of 2005 fundamentally changed the way HomeTown Bankruptcy does business. There are new formulas for calculating income and determining expenses. There are new deadlines for filing documents. There are due diligence measures that the lawyer must take. Congress has gone so far as to call bankruptcy attorneys "debt relief agencies" and require us to disclose this in advertisement. Honest debtors still have the option to file bankruptcy and obtain a fresh start, free of obligation to pay their debts.

The Good News about Bankruptcy Reform

A TWO PERSON HOUSEHOLD CAN EARN OVER $47,000 AND QUALIFY FOR A CHAPTER 7. IF THEY EARN MORE THAN $47,000 THE DEDUCTIONS AND EXPENES CAN BRING THEM UNDER THE CHAPTER 7 LIMIT. A FIVE PERSON HOUSEHOLD CAN EARN $75,000 AND STILL QUALIFY.

In my opinion, it is easier for honest debtors to qualify for chapter 7 under the new bankruptcy reform act. How can this be?

• Social Security benefits are not counted as income of the debtor.
• The IRS standards are more generous than most debtors actually use.
• 401k Loans are an allowable expense. Previously they had to stop upon filing.
• Child support is a real priority now.
• Children's special needs and schooling is an allowable expense.
• Care for a disabled person is an allowable expense.
• You still keep your car, home and wages from day one.

It is a myth that you now "have to pay back your creditors" under the bankruptcy laws. The creditors are paid less now, due to the changes they instigated!

Submit a case evaluation today, and you will receive an estimated cost for your bankruptcy case.