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The new bankruptcy law has provisions that make it harder for the people in debt to file bankruptcy.

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.

You are required to do credit counseling within six months of filing your bankruptcy petition. 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.

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. 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. The president of the American Bankruptcy Institute has reported that some lawyers say they may increase their fees by 75 to 100 percent.

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 lawyer liability, but there are even more changes you should know about.

If you are allowed to file Chapter 7 bankruptcy, there are changes in how your personal property is valued. That meant most, if not all your personal property would fall within the exempt property categories of most states. Since you have to come up with a retail price and your lawyer has to certify it's correct, you just about have to have an appraiser to the valuation. 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.

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

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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