ca bankruptcy

CA Bankruptcy - your questions answered right here...

More About CA Bankruptcy...



It is almost certain that under the new law filing bankruptcy will cost more. 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.

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

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. 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.

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.

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.

Chapter 13 bankruptcy required that you devote all your disposable income to repaying debts. 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. 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. It would probably be a good idea to consult a lawyer before you file.



Contact |  Bookmark this page! |  Privacy |  SiteMap |  CA Bankruptcy (Home)

copyright ©2007 bankruptcystressrelief.com
ca bankruptcy | for filing bankruptcy | tax bankruptcy | alternative bankruptcy

Webmasters: this website is hosted by BlueHost, web hosting for professionals, around the world.
tax bankruptcy