Title 11 of the United States Code contains the federal bankruptcy law. The The Constitution of the United States, in Section 8, grants Congress the power to establish uniform laws on the subject of bankruptcies all over the United States. States don’t regulate bankruptcy but they may pass statutes that influence other aspects of the debtor-creditor relationship. So it is important to understand the federal laws that are applicable to bankruptcy as well as any state laws that are applicable.
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 protected and are exempt from liquidation 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 prior to filing for bankruptcy. Filing fees have been increased and as a result attorney fees have also increased.
There is a great amount of misinformation available there for persons contemplating bankruptcy. If you are thinking about filing bankruptcy, there is no reason to be alarmed by this test. If you are well below the state median income, you will be unaffected. Even debtors who are above the state median income often can qualify for chapter 7 as the expenses are way too high to qualify. However, if your income is near your state’s median, you might want to consult a seasoned bankruptcy in Athens, GA.
———————Athens Georgia bankruptcy lawyer | Bankruptcy attorneys in Athens GA and Athens-Clarke County – Filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy
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