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The new bankruptcy law has provisions that make it harder for the people in debt to file bankruptcy. You probably won't lose any sleep over people who abused bankruptcy, but there are people who lose jobs or have uninsured medical expenses who the new law hurts. Most of the changes will cost you money one way or the other. You are also required to attend money management classes at your expense before your debts are discharged. 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. If you bought your house less than 40 months (that's three and a quarter years) before filing bankruptcy, or violated securities laws, or have been found guilty of certain criminal conduct, you can only exempt up to $125,000 regardless of a state's exemption.

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. If you can find a lawyer willing to take your bankruptcy case, it is going to cost you more because of the time and effort it takes the lawyer to verify your information.

If you do find a lawyer 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. There may eventually be some modifications in the law if it becomes evident it is causing more problems than it solves. 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.

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.

More people will be forced to use chapter 13 bankruptcy under the new law.

Chapter 13 bankruptcy required that you devote all your disposable income to repaying debts. That part hasn't changed, but how you calculate your disposable income has. Then, instead of subtracting your actual expenses, you use allowed expense amounts set by the IRS. The amount of 'disposable income' left may be more than what you have to spare every month.

Under the old law, if your bankruptcy case was dismissed for any reason and you still couldn't pay your bills, it wasn't much of an issue to refile. The new law limits debt relief if you are filing after a prior case was dismissed. Even if the lawyer will not take you on as a client to file bankruptcy, they may be willing to give you legal advice.



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