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It is almost certain that under the new law filing bankruptcy will 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. Under the new bankruptcy law, if you live in a state for less than two years and it has a better exemption than where you lived previously, you can't use the more favorable exemption. It gets more complicated. Under the new law, if information provided in your case is found to be inaccurate, the attorney is subject to various fines and fees. It will be more difficult to find an attorney 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 attorney willing to file, it will cost you a lot more.

It is clear from the changes mentioned here that it's going to be more difficult and costlier to file bankruptcy no matter what chapter you use to file.

You have information about the new bankruptcy law requirements for credit counseling, the income and means tests for chapter 7, residency requirements, and attorney 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. Under the old law, you could value your personal property at basically 'garage sale' prices.

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.

Under the new law, you must live in a state for two years before filing bankruptcy in order to use the state's exemption laws. 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.

Under the new bankruptcy law, your monthly income is your average income for the six months before filing your petition. These amounts are often lower than your actual costs. That means more chapter 13 bankruptcy plans will fail. The new law limits debt relief if you are filing after a prior case was dismissed. Even if the attorney will not take you on as a client to file bankruptcy, they may be willing to give you legal advice.



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