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More About Exemptions Bankruptcy...
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.
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 attorney is subject to various fines and fees. If you can find an attorney willing to take your bankruptcy case, it is going to cost you more because of the time and effort it takes the attorney to verify your information.
If you do find an attorney willing to file, it will cost you a lot more.
See 'Further Changes Brought About by the New Bankruptcy Law' for information on Chapter 13 disposable income and changes regarding personal property. There may eventually be some modifications in the law if it becomes evident it is causing more problems than it solves.
If you are allowed to file Chapter 7 bankruptcy, there are changes in how your personal property is valued. 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. 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.
There are a lot of changes to the bankruptcy laws. 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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