New Bankruptcy Laws

It is almost certain that it will also cost more.

In addition to the new credit counseling requirement for all filers and the means test for chapter 7, there are other changes in the bankruptcy laws. Most of the changes will cost you money one way or the other.
There are new residency requirements. In Florida, your home would have been exempt no matter how long you lived there.
If you have been moving around, the exemption of the state where you lived most of the time before the two-year period is used. It gets more complicated.
If any of the requirements of the new law confuse you and you decide you need a bankruptcy lawyer, it's going to cost you more. It will be more difficult to find an lawyer willing to handle your bankruptcy because of the liability and the time and effort it takes to verify all your information.
If you do find an lawyer willing to file, it will cost you a lot more.
See 'Further Changes Brought About by the New Bankruptcy Law' for information on Chapter 13 disposable income and changes regarding personal property.

You have information about the new bankruptcy law requirements for credit counseling, the income and means tests for chapter 7, residency requirements, and lawyer liability, but there are even more changes you should know about. It's no surprise these changes will make it harder and costlier to file bankruptcy. That meant most, if not all your personal property would fall within the exempt property categories of most states.
Under the new bankruptcy law, you must value your property it the price it would cost to replace it retail, taking into account its age and condition. A car is easier because you can just look up the blue book price. Otherwise you must use the exemptions of the state where you used to live. That reason behind that was to force people who could repay all or part of their debts to do so instead of using bankruptcy chapter 7 which wiped away most debts. That sounds reasonable to a lot of us. Under the old rules, you subtracted your actual expenses from your monthly income to arrive at your disposable income. Then, instead of subtracting your actual expenses, you use allowed expense amounts set by the IRS. These amounts are often lower than your actual costs. That means more chapter 13 bankruptcy plans will fail.

There are a lot of changes to the bankruptcy laws. It would probably be a good idea to consult an lawyer before you file.

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Giles Rutter is a writer and webmaster with experience of debt. He has contributed to Bankruptcy Law. You are welcome to use this article in your website or blog provided that you leave this resource box intact.

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