Carol

Credit Card Debt
2005-05-26 17:10:31 (UTC)

New Bankruptcy Law


In having a conversation with Curtis Walker [Minneapolis,
MN] it seems that the laws will be changing on October 17,
2005.

Whereas, now, a debtor may contact an attorney [for about
$800-upfront], pay the filing fees of about $200, they may
soon be on their way to having their debts dismissed by a
bankruptcy judge. In most cases, a house is protected and a
car can be salvaged. Personal property can also be
protected.

The new law will put your house and personal possessions at
risk of being sold to repay your debt. And if you have even
$100 left over after the necessary expenses, you can be
directed into filing a chapter 13 instead of a chapter 7.
That $100.00 a month can be paid over a period of 3-5
years.

Lawyers will also charge more as more documents will have
to be included in a petition to file bankruptcy. The cost
to hire an attorney may be double or triple, and of course,
must be paid up front.

Your creditors, upon filing, can request your W2 forms, tax
records, all credit statements, bank statements etc. A
potential filer will have a few more forms and maybe even a
few more court appearances with the new law.

The new bankruptcy law will require a potential filer to
seek assistance from a Consumer Credit Counseling agency
for up to six months before being considered to file.

Once a person has filed bankruptcy, this person will have
to complete an educational class on managing finances. Who
will pay for these required 'classes' has not yet been
decided.

The bankruptcy attorney is advising any debtor who is
kicking around the thought of filing bankruptcy to do so
before October 17, 2005. After that date, the debtor can be
in for more expense, more court appearances, more documents
and a monthly payment to a trustee.


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