Bankruptcy law is a federal statutory law contained in Title 11 of the United States Code. The US Constitution, in Section 8, grants Congress the power to establish uniform laws on the subject of bankruptcies all over the US. States do not regulate bankruptcy but they may pass laws that affect other areas of the debtor-creditor relationship. So it is important to know the federal statutes that are applicable to bankruptcy as well as any state laws that may apply.
In April 2005 some big changes to bankruptcy rules were made by the Bankruptcy Abuse Prevention and Consumer Protection Act, affecting all bankruptcies filed after October 2005. The assets in Individual Retirement Accounts are exempt assets and cannot be sold to pay creditors. To limit the availability of a Chapter 7 discharge of debt, the regulations have been significantly revised. A Means test now governs eligibility for filing Chapter 7. Debtors should attend in approved credit counseling before they can file bankruptcy. Filing fees were increased and as a result attorney fees have also gone up.
There is a great amount of misinformation out there for debtors considering bankruptcy. If you are thinking about filing bankruptcy, there is no reason to worry by the means test. If you are well below the state median income, this change will not affect you. Even debtors who are above the state median income often can qualify for chapter 7 as the expenses are high enough to be eligible. However, if your income is near your state’s median, you might want to consult a seasoned bankruptcy in Muscogee County, Georgia.
———————Columbus Georgia bankruptcy lawyer | Bankruptcy attorneys in Columbus GA and Fort Benning – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Columbus GA and Fort Benninghttp://www.columbus-ga-bankruptcy.com
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