New Bill in US Senate

This is my fist time in the Forum, and nobody seems to be talking about the new bankruptcy reform bill which has already passed the House and is now in the Senate. I some- times assist family/friends when they want to file Chapter7 bankruptcy w/out an atty. Is there still time to file under the "old" law? It looks like the reform could get thru the Senate any day now, and Prez Dubya will definitely sign it. If "one" were to file now, would that Chapter7 proceed based on the pre-reform rules? Thanks!

[racer72]

I have been suggesting to those considering a chapter 7 bankruptcy to file soon. Bankruptcy courts across the country have already seen an increase in filings due to the bill. If signed into law, it will take effect in 90 days unless the Justice Department asks for a 90 extension prior to the bill being signed into law, which would most likely happen due to the many changes. The law in effect the day a person files for bankruptcy will be the one use throughout the bankruptcy process.

I think the bill has good points and bad points. Any debts incurred 60 days prior to filing cannot be dismissed which catches those that like to run up the credit cards just before filing. But I also feel it is extremely rough on the poor and those that have health and medical problems causing their debt problem. It will be a lot more difficult for the courts to dismiss challenged debts so you will see a lot more creditors challenging dismissals and the debts being allowed to stand. I think all involutary debts such as those from medical problems or other emergencies should have stayed the same as the law in effect today.