New bankruptcy laws

[Rambla]

What is the name of your state? California

What is the last possible date one can file for Chapter 7 and take advantage of current bankruptcy laws before the new Oct. 17 laws take effect? Is there a lead time?

Thanks

[Ladynred]

The new law goes into effect on 10/17. Any cases filed BEFORE that date are under the new law. Lawyers are swamped, some are saying ALL papers must be ready to file by 9/30. Call around if you're going to use a lawyer, find out what their last possible date is.

[bobbey]

just make sure you find an actual Attorney - do not get caught up in debt relief by filing a Chapter 7 - make sure you have an Attorney.

if you file before the 17th of October the old laws apply.

[Ladynred]

do not get caught up in debt relief by filing a Chapter 7

What are you talking about ??? Bankruptcy IS debt relief.

if you file before the 17th of October the old laws apply.

Isn't that what I said ??? The point is, lawyers are swamped with last-minute filers, you cannot wait until 10/15 to find a lawyer !

[spybaby]

My state is Georgia.

I've heard that after Oct. 17 that you will no longer be able to file for a complete discharge of debt is this true?

I am considering filing to address a considerable amount of medical debt as well as some minor personal debt. I have been unemployed since suffering a heart attack in April 2004. Also, I filed BK with my ex-husband back in '96, does this affect my ability to BK?

[Ladynred]

If you filed BK in 1996, you CAN file again now.

I've heard that after Oct. 17 that you will no longer be able to file for a complete discharge of debt is this true?

No, not exactly. Under the new law, getting a CH 7 WILL be much more difficult. If you make more than your state's median income, you will be forced into a 5 year Ch13 and it will be a very strict Ch 13, worse than it is now.

If you're not working and you income is BELOW the state median, then you will be allowed to file Ch 7, but you will have to go thur madatory credit counseling FIRST before you can file ANY chapter, and you will have to go thru a money management course before you will be granted a discharge. Lawyers are going to be charging a LOT more, and filing fees are going up.

In a Ch 7 (or 13) now, your ACTUAL living expenses are used. AFter 10/17, your actual expenses will basically be ignored and you will be TOLD what you can spend on things like rent, groceries, transportation, utilities, etc. All expenses must be at or below the IRS Collection guidelines. If your expenses are OVER the IRS guidlines, you will only be allowed what the IRS says. You can appeal that, but you will incur more court costs because it will require a hearing before the BK judge.

Its going to be VERY nasty to file BK after 10/17, so if you can file before that, do it !

[spybaby]

The problem I have with meeting the 10/17 deadline is that I have 3 years back tax returns to file. (I tend to procrastinate obviously) Can I file these returns, file BK and then wait to hear back from the IRS in the interim? Or does everything have to be ready to go when I file BK?

[Who's Liable?]

Originally Posted by spybaby

My state is Georgia.

I've heard that after Oct. 17 that you will no longer be able to file for a complete discharge of debt is this true?

I am considering filing to address a considerable amount of medical debt as well as some minor personal debt. I have been unemployed since suffering a heart attack in April 2004. Also, I filed BK with my ex-husband back in '96, does this affect my ability to BK?

After Oct. 17, it will be MUCH HARDER to get a chapter 7, which is a complete discharge of debts... You will have to meet certain criteria, such as you have to make less then the median income for your state... For example if the median income for your state is $35K, and you make 45K, then you will be forced into a Chpt. 13... On top of that you will be forced into credit counseling at YOUR expense, plus the payment plan for the BK13 that will last in most cases 5 years...

Your paper work MUST be FILE BEFORE 10/17... and as stated before, you cannot wait until the 13, 14 or 15 to file... already courts are getting swamped with last minute filers...

[spybaby]

After Oct. 17, it will be MUCH HARDER to get a chapter 7, which is a complete discharge of debts... You will have to meet certain criteria, such as you have to make less then the median income for your state... For example if the median income for your state is $35K, and you make 45K, then you will be forced into a Chpt. 13... On top of that you will be forced into credit counseling at YOUR expense, plus the payment plan for the BK13 that will last in most cases 5 years...

Your paper work MUST be FILE BEFORE 10/17... and as stated before, you cannot wait until the 13, 14 or 15 to file... already courts are getting swamped with last minute filers...

Who's Liable? Ladynred already answered me and told me virtually everything you've just said, but thanks anyway!

Ladynred, how bout these back taxes I need to file? Can I start BK proceedings now while waiting for my returns to be processed??