Bankruptcy in Augusta, Georgia.
Bankruptcy law is a federal statutory law contained in Title 11 of the United States Code. The United States Constitution, in Section 8, grants Congress the power to establish uniform laws on the subject of bankruptcies throughout the US. States do not regulate bankruptcy but they may pass laws that influence other areas of the debtor-creditor relationship. So it is important to understand the federal rules that are applicable to bankruptcy as well as any state laws that are applicable.
Since April 2005 some major changes to bankruptcy rules were made with 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 restrict the availability of a Chapter 7 discharge of debt, the rules have been significantly revised. A Means test now governs eligibility for filing Chapter 7. Debtors must take part in approved credit counseling before they can file bankruptcy. Filing fees were increased and as a result lawyer 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 panic 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 way too high to qualify. But, if you have an income near your state’s median, you might want to consult a seasoned bankruptcy in Augusta, Georgia.
———————We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.
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