When will new Bkrptcy Bill take effect if passed?

[suziedebtridden]

What is the name of your state? IN
Does anyone know how long a person has to file bankruptcy under the "current/old" rules if the new bankruptcy bill is passed?

Originally Posted by suziedebtridden

What is the name of your state? IN
Does anyone know how long a person has to file bankruptcy under the "current/old" rules if the new bankruptcy bill is passed?

That bankruptcy bill will never see the light of day.

AND if it did, no one can answer your question till it actually passes and survives all the court challenges.

[Ladynred]

I sure as hell hope it never sees the light of day. Grassley is determined to shove it thru this time.

IF it does manage to get passed.. and pray that it does NOT.. then it will go into effect 6 months after Bushy-boy signs it into law.

If you're thinking about filing, do it NOW.

[bkinus]

What if you still have none luxury charges and on your cards and cash advances over $1,000.00 within the past 60 - 180 days? Isn't that too risky for usage to file now? Would it be best to wait a full 60 days, 90 days or the whole 6 months before any usage?

Also, what if my last payment to a card $400.00 ea. was on 12/29 and another on 1/29, do I have to wait just 60 days past 1/29 payment or do they only look at "billing cycles" which would bump it into another month completely?

I've tried to look at the "mean's test" for the new reform, and I think we still clearly meet the requirments for chapter 7 even if reform bill goes through, but will the new legislation tap into annunity accounts? (I've been unable to understand wording on that issue).

Big Question: Do you HAVE to file once you've notified your creditors that you have an attorney? Once you notify creditors that you have an attorney, does a clock start ticking to force you to file within 15 days? Or can you file when you get all your paper work together and are ready?

It sure is looking to me like this bill is flying through without a hitch, what could possibly stall it at this point?
IF?? the new bill won't be inacted until 180 AFTER Bush signs it wouldn't it be best to wait it out instead of having to explain any usage?

[Ladynred]

It isn't 'flying' anywhere yet. The judiciary had hearings last Thursday and they are trying to get it out for 'markup' this week. That by no means that its going to get very far after that. It is also unclear as to how many other hearings may take place.

If that bill gets past, its likely you, and most everyone else, will be forced into a Ch 13.. *I* would not wait for it to pass !

If you've got recent cash advances, then yes, you want to wait at LEAST 90 days from the last one. Of course, if you can prove you took them for NECESSITIES then it may not matter.

They don't give a hoot about 'billing cycles' as all cards are not the same. What matters is when you last USED them. You do NOT have to be delinquent to file for BK. Its recommened you stop paying 'cause there's no point in throwing your money down a rat hole when you are going to file. If you have not paid $600 total to any ONE creditor in the 90 days preceeding your filing, then the payments won't matter much.

No, you do NOT have to file, there is absolutely NOTHING forcing you to file once you hire an attorney, that's absurd. If you file an EMERGENCY petition, THEN you have 15 days to finish and file the remaining paperwork.

As for annuity accounts, that is a possibility that has been presented, but I think its still up for debate as to whether or not it will be added. Personally I don't think screwing people out of their retirement is a good idea, but these out-of-touch senators have other ideas.

[bkinus]

Thank you so much!!!!

[bigun]

The Senate version {resolution 256} exempts ERISA qualified retirement accounts as well as accounts that may not be ERISA qualified. I'd agree with LIR. If this becomes law, file! Better the devil you know {current bk law} than the devil you don't know.


`(4) For purposes of paragraph (3)© and subsection (d)(12), the following shall apply:

`(A) If the retirement funds are in a retirement fund that has received a favorable determination under section 7805 of the Internal Revenue Code of 1986, and that determination is in effect as of the date of the filing of the petition in a case under this title, those funds shall be presumed to be exempt from the estate.

`( If the retirement funds are in a retirement fund that has not received a favorable determination under such section 7805, those funds are exempt from the estate if the debtor demonstrates that--

`(i) no prior determination to the contrary has been made by a court or the Internal Revenue Service; and

`(ii)(I) the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986; or

`(II) the retirement fund fails to be in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 and the debtor is not materially responsible for that failure.

`© A direct transfer of retirement funds from 1 fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986, under section 401(a)(31) of the Internal Revenue Code of 1986, or otherwise, shall not cease to qualify for exemption under paragraph (3)© or subsection (d)(12) by reason of such direct transfer.

`(D)(i) Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402© of the Internal Revenue Code of 1986 or that is described in clause (ii) shall not cease to qualify for exemption under paragraph (3)© or subsection (d)(12) by reason of such distribution.

`(ii) A distribution described in this clause is an amount that--

`(I) has been distributed from a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986; and

`(II) to the extent allowed by law, is deposited in such a fund or account not later than 60 days after the distribution of such amount.'; and

(2) in subsection (d)--

(A) in the matter preceding paragraph (1), by striking `subsection ((1)' and inserting `subsection ((2)'; and

( by adding at the end the following:

`(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.'.

[phas]

where do i get more info on the new bankruptcy law at?can someone please copy and post part of it Thanks

[bigun]

For some reason, this link only stays active for a short time.

[url]http://thomas.loc.gov/cgi-bin/query/D?c109...p/~c109vl6j3s::[/url]

Do a google search with the term senate resolution 256 bankruptcy reform and it'll be the 2nd or 3rd listing.

[bkinus]

O.K. so I'm not the sharpest tool in the shed. But I swear I have really tried to read that stuff on the annunity and it makes me dizzy. Do you happen to know what is "favorable determination". I have read that part of the reform before, but I honestly just don't understand what it is saying in plain English. Do you have any idea what examples there might be that would illustrate a non-exempt fund? Or do they word it that way on purpose so it can't be understood (just kidding)!

Q: Or do they word it that way on purpose so it can't be understood

A: Yes, it keeps the lawyers busy. Bureaucrats have a fear of being understood.

[suziedebtridden]

I was under the impression the new law was a slam dunk this time. I also hope the new law doesn't get passed.

Originally Posted by suziedebtridden

I was under the impression the new law was a slam dunk this time. I also hope the new law doesn't get passed.

Slam dunks are not allowed in Congress. All this stuff in this thread could be changed tomorrow.

[Barto]

Email, write, or call your Senator!

To Contact your Senator go to [url]http://www.senate.gov/index.htm[/url] , follow the links to your State’s senator. Each Senator should have contact information on their website.

I think personal accounts of hardships that would be endured if this passes would be best.

There will be a strict means-test to determine if your debts will be dischargable. Basically if you earn above the median household income of your state (nationally I think it is around $43,000) you will not be able to file for Ch 7. This is regardless of how you accumulated your debt. So if you had major medical expenses, as more than half of those who file for bankruptcy do, it makes no difference.

[thorpe345]

It looks like the bill is on the way to the House. I wonder if it may get held up there but from what I have been reading they have said they will pass it.