New Law Changes Hopefully Explained

[davio2shoes]

What is the name of your state? WV
Ohk Ive been reviewing the new "wonderful" (read EXTREME sarcasm!..lol) bankruptcy law.
After reeading, rereading, and questioning people this is what Ive determined.
REMBER Im just ME..NOT a lawyer.

MOST parts take effect 180 days after its signed.
That places it taking effect in Early to middle october.
4 sections take effect IMMEDIETLY.
Sec 308, 322, 330, and 1402.

SEC 308: Reduces certain house exemptions IF during the previous 10 YEARS the value of the house was reduced to defraud creditors or to make it exempt where it wouldn’t have been before. If no attempt to defraud then this section doesn’t apply.`
Sec 322: Any increase in value of their residence interest IF this increase is 125,000 or more, AND occurred within the last 1215 days of filing. They seem to be assuming that such a large increase would only occur if one is hiding cash or assets into ones home to exempt it. IE again its about actual or assumed attempt to defraud.
Sec 330: Applies IF at least 10 days before discharge the court determines you are guilty or may be determined to be guilty of certain specific felonies. The specific felonies Im not sure of...this section gets confusing..LOL.
Sec 1402: Refers to transfering property or cash in order to avoid loosing it...either in bankruptcy, to collections, or in civil or criminal cases. It extends the period of time the trustee can look back over your finances to check on this. It also ADDS employees as insiders for purposes of transfers, IF such transfer was outside normal buisness.

Again its about actual or presumed fraud.
So IF one is not involved in fraud AND your trustee doesnt DECIDE or SUSPECT you of fraud the new law takes effect in early to middle october.
IF not...your in more trouble then just having to face the new law..LOL.

[AttorneyOney]

It is true that cerrtain sections affecting state homestead exemptions will take effect immediately upon enactment. The OP's summaries of how those sections change the law are wrong, however. Attempting to explain HOW the law will change is a bad idea because it can lull people into a false sense of security.

The bottom line is that anyone who owns a home and is in financial trouble needs to see a qualified bankruptcy attorney IMMEDIATELY -- i.e., first thing Monday morning -- to see if an immediate filing would be in their best interest. If the attorney you contact is unaware of the impending homestead changes, find another attorney.

[davio2shoes]

You state the OP summary is wrong.
Ok I went off what the ACTUAL text of the law states.
A) OTHER then sec 308, 333, etc it takes effect 180 days AFTER its passed.
B) sections 308, etc ALL refer to fraud ONLY.
So...is the actual text of the law wrong?
Or are you stating, as a lawyer, that the text of the law can be ignored and they can do whatever they like???

[AttorneyOney]

I don't like to engage in colloquies on this forum, but... what I am saying is that the law is not as you make it out to be. Other readers here may make decisions based on that erroneous view and lose their homes as a result. Only an attorney who understands both what the new law will do and the facts of someone's case can give concrete advice.

Just for example, the new ten-year lookback refers to transfers made with the intent to hinder, delay or defraud a creditor. This is broader than actual fraud -- it could encompass a transfer that would be perfectly legal under a state law that permits a debtor to shelter assets on the eve of a lawsuit.

Also for example, the new rule that a homestead less than 1215-days old will be limited to $125,000 applies regardless of fraud.

[davio2shoes]

You state:
"what I am saying is that the law is not as you make it out to be."
ME: I went off the ACTUAL text.
Either the law is as it states or its not.
secs 308, 322, etc ALL state in the TEXT and in Congresses legistated summuray FRAUD.
Ive also consulted 3 bankruptcy attornies and they all have stated the same.
Unless fraud or expected fraud is involved the new law doesnt take affect until 180 days after it is signed.
While their may be complexeties of this the law still states that thats its intent.
Unless as a lawyer your stating the law can be twisted to mean other then it says...

[davio2shoes]

Under new thread Look for yourself Im posting the actual text of the new law.
If anyone can show how this can effect people other then in fraud or expected fraud im sure it be appreciated.

[toughluck73]

Laws are meant to be interpreted by judges (not you, davio2shoes). So what you think the new law means is meaningless. Additionally, the new law holds lawyers more accountable for their clients, so lawyers’ fees will likely skyrocket, so if you can’t afford an attorney now, you certainly won’t be able to later but guess what, creditors will still have attorneys. Thirdly, you will be forced into credit counseling, and guess what, no one really knows how that’s going to work either (presumably debtors will have to flip the bill). These examples just scratch the surface and if you still can’t figure out what’s wrong with the new law, then maybe you need to educate yourself a little better because it's not all about fraud.

[davio2shoes]

perhaps YOU need to educate yourself on law and reading.
Specifically, the part of forcing people into credit counceling ONLY takes place after 180 days.
The law and 3 bankruptcy attornies ALL agree that ONLY the sections I listed above take place immedietly. NONE have anything to do with credit counceling.
Laws are to be interpreted by judges, but they also are to be understood by everyone they effect. If the terms "takes effect 180 days after the bill is inacted" can mean anything other then takes effect 180 days after bill inacted, then the law is meaningless. Judges can decide ANYTHING they want. File now, file later...theyll decide what ever they want.
Sorry I dont believe that.