The New Bankruptcy Law 

 Under the new bankruptcy law, the IRS has made it more difficult for people to file Chapter 7 bankruptcy ...

From: Kate Rieger, President
Second Opinion Solutions Group, LLC
Corydon, Southern Indiana
Monday 07:05pm

Kate Rieger  Understanding Changes in BK Law

Under the old bankruptcy law, filing for Chapter 7, or straight bankruptcy, was relatively easy and it gave debtors an escape path when they could no longer afford to pay their bills. In Chapter 7 bankruptcy, your assets are sold to repay your debts, and anything that cannot be repaid is written off.

Similarly, Chapter 13 bankruptcy law, or personal reorganization, lets creditors work out a repayment plan with debtors over a five year period. Chapter 13 bankruptcy is not considered as harsh on your credit history as Chapter 7, giving you an easier path toward regrouping following the procedure.

Now under the new law, the IRS has made it more difficult for people to file Chapter 7 bankruptcy, at the same time encouraging people who would've initially taken that route to look into Chapter 13 bankruptcy. This is primarily due to the fact that the IRS wants people to take more responsibility for their financial actions and not rely on the government as a scapegoat.

For Consumers
Consumers are now required to consult a credit counseling agency six months prior to filing for bankruptcy.  Consumers are also required to take money management lessons to show that you are making a concerted effort to dig yourself out of your financial woes.

If your income is greater than the median income in your state, your bankruptcy request can be denied by the courts.
If your income is above the median and you are able to repay 25% of your debt, your only option is filing for Chapter 13 bankruptcy.

When you do file for bankruptcy, you are given a 45 day window to present all the necessary documents or you case will be thrown out.

For Attorneys

Attorneys are held responsible for all presented documents.
They are required to verify the accuracy of the information, disclose all fees, present a written contract, and acknowledge that their client is not required to hire an attorney in order to file bankruptcy. (In other words, the client has the right to file their own bankruptcy.)

Before you deal with bankruptcy law, start the process of disputing the debt and dispute negative entries on your credit report. 

Consider debt settlement before giving into bankruptcy.

It doesn't matter if you are talking to a credit card company, automobile dealership, a bank or debt collector. Businesses will settle if they are convinced you are going to stop paying completely. 

If you are interested in starting your own credit repair today all you have to do is enroll in my free online mini course called  "Extreme Debt Reduction & Credit Score Boosting Strategies That 98% Of Borrowers Will Never Know -- And How You Can Learn These Strategies Too..."

This is a great time to start your credit repair with this free online mini-course.  There are 7 easy to follow lessons that you can refer back to at any time. You will also receive access to my exclusive credit repair and debt reduction newsletter called 'Credit Rejuvenation!'  To start receiving these proven strategies an the free, online mini-course, please complete the short form below and you can start immediately -

Yes Kate - I want to start today!

What others are saying...

Hi Kate,

I do want to thank you so much for your quick and thorough responses to my questions. I am amazed at the amount of information you manage to deliver. Your  program is terrific.

You give an awful lot of personal attention that can never come from a computer program.

Thanks for everything - I mean it!

Melissa

Louisville, KY

Dear Ms Rieger,

God Bless You!

You treated me like I was someone important.  I thank you for that and for showing me how to improve my FICO scores. You are truly amazing!

Sincerely,
 

Roberta D.

Jeffersonville, IN  

Credit Rejuvenations Rocks!

Dave

Warmest Regards,