... you may seriously want to file for bankruptcy NOW before the recently passed new bankruptcy law takes effect.
The major reason for concern is that unlike the previous law which basically accepted the person's 'statements' in regard to their income and delinquent bills, the new law requires that attorneys VERIFY the income and delinquent bill situation of their clients before filing. Thus, unless you have a 'squeaky clean' record in regard to bookkeeping and paying income taxes, it's highly probable that attorneys will either shy away altogether or charge exorbitant prices to file for bankruptcy on behalf of a person whose actual income is unverifiable.
Besides the verification of personal financial situation issue, the new bankruptcy law also brings into play new rules which essentially will require anybody with the potential of a non-poverty level income to file Chapter 13 instead of Chapter 7. Where Chapter 7 basically erased past debts, Chapter 13 requires that after bankruptcy the person continue to make small payments to previous creditors. Chapter 13 basically allows a bankruptcy judge to establish the bankrupt person's monthly budget and forces the person to follow that budget for the next 5 years. This court determined budgeting process takes into account IRS data on average costs of living in a particular area, and may force a bankrupt person to move into a cheaper apartment, live on a cheaper grocery budget, do away with 'luxuries' like cable TV or high speed internet, and otherwise micromanage a bankrupt person's financial life for the next 5 years.
The new bankruptcy law also essentially 'overrides' state law bankruptcy exclusions for a person's house to close a huge existing loophole.



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