History of Chapter 7 Bankruptcy
Chapter 7 is the most common type of bankruptcy, but did you know the eligibility and process have gone under some revision since its creation? If you’re considering filing for bankruptcy protection, you should be aware of the most current laws that contribute to a chapter 7 bankruptcy and what information is old hat.
There have been some significant changes made to bankruptcy law in the past decade. Some of these changes even affect the requirements for lawyers, which means it can be difficult to select a qualified attorney if you don’t know where to look. Some of these changes to Chapter 7 bankruptcies include:
New Chapter 7 bankruptcy Laws
Eligibility restrictions- if your income is more than the median income for your state, you must pass the means test to file for a chapter 7 bankruptcy.
Required Credit Counseling- before you can file you must undergo credit counseling with an agency approved by the united States Trustee’s office. Toward the end of your bankruptcy case, you will have to undergo another required counseling session.
Outdated Chapter 7 Information
Can Anyone File For Chapter 7 Bankruptcy?- No. If you make too much money you will have to file under a chapter 13 reorganization plan.
Property is valued at Auction Price- False. As of 2005, property is now valued at replacement cost. This means that your property may be liquidated and sold by the trustee during the bankruptcy process.
It’s important to speak with a bankruptcy attorney that’s experienced with the new bankruptcy laws. Call 800-260-1402 and get a free case evaluation.
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