Changes to the Bankruptcy

In 2005, Congress finally yielded to the bank lobby. As a result, consumers now face a revised bankruptcy law that forces some households into debt repayment plans—even when they prefer to file under Chapter 7 (debt liquidation). In general, this law requires filers who earn more than the median income in their area to pass a means test. If the bankruptcy court finds that debtors can pay at least part of what they owe, they will not receive a full discharge. They must continue to pay what the court says they can afford. (A bankruptcy specialist can work through your income, bills, and expenses to tell you how you might fare in bankruptcy court.)

0 0

Post a comment