Has anyone filed under the new laws?

[mperry60]

What is the name of your state? NY

Just wondering if anyone has filed a Chapter 7 under the NEW laws. I know in my district in NY not one has been filed since 10/16.

 

[Who's Liable?]

Filing a BK7 is a VERY difficult thing to do now... Most if not all of the BKs will be a 13 from now on...

 

[AlexandriaDumas]

I was told the new laws are not at all good in that they pit the attorney against the client, opening up a new layer of attorneys--those that will be used by the bk client to sue his bk attorney.

Do you know anything about this?

 

[mperry60]

Filing a BK7 is a VERY difficult thing to do now... Most if not all of the BKs will be a 13 from now on...

Why is that? If you can pass the Means Test you should be able to file a Chapter 7 just as before. No?

 

[jetskiscott2]

I would be very interested in hearing what a BK7 is like these days.

 

[Ladynred]

Even if you 'pass' the means test, that is NOT a guarantee that you'll get a Ch 7. If you have at least $100/mo in disposable income, given the IRS ALLOWED expenses (not your actual), even if you're below the median income you could wind up in a Ch 13.. a very NASTY Ch 13 for 5 years.

You now have to deal with the mandatory credit counseling before you can even file a petition. There are new requirements on lawyers to be certain that the client's info is accurate - otherwise the lawyer can face fines and sanctions.
The debtor must now provide a LOT of backup documentation WITH the petition, such as tax returns, titles, mortgage contracts, tax assessments and appraisals, bank statements.. LOTs and LOTS of paperwork. Creditors have the right to copies of ALL of it, so I'd bet more creditors will use them to argue fraud.

BK now is an ugly, expensive and nasty process. CH 13 is now a true 'debtors prison' - it certainly isn't the 'fresh start' it was originally meant to be.

 

[Who's Liable?]

It's going to hurt a LOT of good people...