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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. 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. 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. Under the new law, if information provided in your case is found to be inaccurate, the lawyer is subject to various fines and fees. It will be more difficult to find a lawyer 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 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. 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.

Also, under the old bankruptcy rules, the exempt personal property you could keep under chapter 7 was determined by the laws of the state where you lived if you resided in the state for at leas three months.

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. That sounds reasonable to a lot of us. That part hasn't changed, but how you calculate your disposable income has.

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.

There are a lot of changes to the bankruptcy laws. It would probably be a good idea to consult a lawyer before you file.



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