A question for a friend??

[formerlsa]

What is the name of your state? Ma

A few questions. Hope someone here knows the answers because I think the law changes soon. First of all: Can you include past judgements and /or accounts that have been turned over to collection agencies? Like leases or repos?

Also which chapter would you file? This person owns nothing.Would it be 13 or 7? When should they file for bankrupt and when does the law change? Are you safe if you file before the new law takes effect and what exactly does the new law mean?

Thank you all who have this wisdom.

 

[bigun]

She'd file a Chapter 7. That will totally destroy all unsecured creditors.
Judgments from cc debts, repos, medical bills-accounts with collection agencies. List 'em all.
She needs to file before 10/17.
Many changes after that. The biggest will be means testing and using IRS tables to figure your expenses.

 

[Ladynred]

Can you include past judgements and /or accounts that have been turned over to collection agencies? Like leases or repos?

Absolutely, and that won't change with the new laws either.

Also which chapter would you file? This person owns nothing.Would it be 13 or 7?

We'd need a lot more info to determine that but if he/she has no assets, then a Ch 7 would be more likely. Does this friend work ??? How much disposable income does he/she have (what's left after paying all necessary living expenses) ?

When should they file for bankrupt and when does the law change?

If he/she is going to do it, better do it NOW. Lawyers are getting swamped with last-minute filings and are recommending you get filed NO LATER than 9/15. The new law takes effect on 10/17/05.

Are you safe if you file before the new law takes effect and what exactly does the new law mean?

Yes, as long as you file before 10/17 you're filing under current law.

What does the new law mean ?? HUGE changes: it will cost more to file; mandatory credit counseling before you will be allowed to file ($$ comes out of YOUR pocket); mandatory financial managment class before you can get your discharge; the rotten 'means test' - if you make more income than your state's median, Ch 7 may not be possible at all, you'd be forced into a Ch 13 under very restrictive budgets.

The list is very long and its going to hurt a LOT of people. If you want to read the WHOLE thing, start reading here -- get a snack before you start !!
http://abiworld.net/bankbill/

 

[formerlsa]

thanks

thanks you guys I will copy this and give it to her today!!