Changes in Bankruptcy laws

What is the name of your state?Cali.
I am not sure when I or if I am going to file but things are getting deep. People are warning me that if I do not file now I will not have the chance to do so later due to the changes in bankruptcy laws that are pending. Can I find out the truth about this from someone that’s not just trying to coheres me into filing ASAP?

You will still be able to file, it just may not look the way you'd like it to.

It's not that you will flat out not be able to file, there will just me much stricter requirements for being able to file Ch. 7. If you make below your states median income, then you will still be able to file Ch. 7, there will just be more hoops to jump through. If you earn more, you will probably have to file Ch. 13. If/when the bill is passed it will be 6 months before it goes into effect. Now, I imagine that if it passes that everyone who has been sitting on the fence will rush to file and the lawyers and courts will be swamped, but you definitely do not have to rush out and file today, or probably even next month.

Re: New Law

With the added complexities of the new law, it is likely that lawyers will increase their fees and you would also be forced into credit counseling. So, it is likely that not only will it be harder to file but also more expensive. Best thing to do is to talk to a lawyer and understand your options, they usually won’t charge for the initial consultation, so you have nothing to lose.

You won't have a choice - if your income is above the state median, you WILL be FORCED into a 5 year Ch 13 on a VERY strict budget. Your ACTUAL living expenses will be ignored - the IRS tables will tell YOU what you are allowed to live on !

You don't want to sit on the fence too long, go see a lawyer !

chris7 said:

If/when the bill is passed it will be 6 months before it goes into effect.

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There are two changes to the way state homestead laws apply in bankruptcy that will take effect as soon as the bill is signed. Anyone who is thinking about bankruptcy and owns a home should consult a qualified bankruptcy attorney immediately to see if the changes will affect them.

AttorneyOney - would that be the residency requirements to claim the exemption and the 125K cap ??

Ladynred said:

AttorneyOney - would that be the residency requirements to claim the exemption and the 125K cap ??

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The 730-day residency requirement would not kick in for 6 months, at least per the Senate bill. There is, however, a new 10-year lookback for arguably fraudulent transfers that will have immediate effect. The 1215-day waiting period for full homestead protection is another immediate change.

There are other sections of the bill that would have immediate effect. Trying to spell any of them out here might lull laymen into a false sense of security, leading to a loss of rights. Hence my advice to see an attorney immediately -- even a two-week delay in filing could be prejudicial.

Thanks
I've read thru the changes, of course, but is there a source *I* can get to that spells out what all the immediate changes will be ?

The effective dates are spelled out in a great many sections of the act. There is a summary reachable through the "news" link at clla.org.

Cool, thanks. I've been to CLLA many times lately, somehow I missed that information.