Welcome to Bankruptcy Guide
Bankruptcy Trustee Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
The New Bankruptcy Laws and You!
from:The new bankruptcy laws are really not so new anymore since they were passed in 2005. But they are called the “new” laws to differentiate the current law from the bankruptcy law that was in effect prior to October 2005. Anyone who filed bankruptcy prior to 2005 is under the old law and the old law requirements. Since it takes years for some bankruptcies to be completed, such as a chapter 13 repayment plan, there are plenty of people still being monitored according to the old rules.
The new bankruptcy laws did make some important changes though. Many people feel the new laws primarily benefit creditors such as the credit card companies, because of the creation of the “means test”. The means test is used to measure your capability to pay something back to your creditors.
Under the old law, if you had no assets to be liquidated many creditors received nothing in the way of repayment. Under the new law, if your income meets certain tests then you might be forced to file a chapter 13 bankruptcy. A chapter 13 bankruptcy requires a repayment plan be put into place that is then monitored by the courts through an appointed trustee. The means test compares your income to your state of residency median income and also figures the amount of disposable income you have for debt repayment after basic living expenses. If you have enough net income and exceed the median income, you will most likely have to file a chapter 13.
But the means test is not the only change in the new bankruptcy laws. Others include required debt counseling and an increase in the number of repayment years from 3 to 5 under a chapter 13 filing. But one of the most complicated changes to understand is the changes in the homestead exemption. Under the old law, the exemption had no limit. Under the new law it is limited to $125,000 and can only be taken in a state in which you have lived for at least 3.3 years. This law change can have a big impact on whether you get to keep your house or will be forced to sell it.
Even bankruptcy attorneys were impacted by the new bankruptcy laws. The new law says that an attorney can be held liable for wrong information reported to the court even if the attorney thought his or her client was telling the truth. There is a now a schedule of fees and fines that can be charged to the attorney. The ironic net result is that attorneys must now charge clients more for bankruptcy filing fees in order to cover the increased liability.
There are other new sections in the laws that may or may not affect you. For example, there is a tithing section which says you can tithe 15% of your income to a charity of choice. Also, there is a section that deals with how a car loan is to be handled with a net impact that debtors will have to pay more on their cars in order to keep them.
The new bankruptcy laws have forced many people to file a chapter 13 rather than a chapter 7. But it is important to remember that either way you will get needed debt relief.
Bankruptcy Trustee News
Gingrich's private ventures are going bankrupt - Reuters
Gingrich's private ventures are going bankrupt Reuters By the time Gingrich sold his majority stake in the center to three associates last May, it had been hemorrhaging clients and facing "cash-flow issues" for roughly a year, according to testimony on May 9 before a US bankruptcy trustee in Atlanta. |
Lender, trustee deal will allow sale of State Fair in one piece - Richmond Times Dispatch
 Fredericksburg.com | Lender, trustee deal will allow sale of State Fair in one piece Richmond Times Dispatch The nonprofit converted the bankruptcy to Chapter 7 liquidation in March. The agreement between the bankruptcy trustee and lawyers for the lender group allows for the entire fair to be sold together rather than piecemeal. Trustee, lenders' deal would allow State Fair of Va sale in entirety, pay ... |
MF Global paid Corzine $8 million in year before collapse - Chicago Tribune
 The Star-Ledger - NJ.com | MF Global paid Corzine $8 million in year before collapse Chicago Tribune Corzine's pay along with that of other former MF Global executives was listed in a court document filed on Friday by Louis Freeh, the trustee unwinding the company's bankrupt estate. Corzine, a former Goldman Sachs chief and New Jersey governor, ... MF Global Paid Corzine $8.4 Million In Year Before Collapse MF Global Paid Jon Corzine $8.4 Million In Year Before Collapse MF Global's Corzine got $8.4M in year before collapse |
Trustee Collects $168 Million - Wall Street Journal
 New York Times | Trustee Collects $168 Million Wall Street Journal By AARON LUCCHETTI JP Morgan Chase & Co. agreed to hand over $168 million to a bankruptcy trustee representing customers of MF Global Holdings Ltd. The trustee, James Giddens, said in a statement Friday that the money paid "represents the proceeds of ... MF Global Trustee Gets $168 Million From JPMorgan MF Global to get $168 mln back from JPMorgan MF Global $1 Billion Vanished Into Brokerage, Court Told |
Racetrack land is up for auction again - WatertownDailyTimes.com
Racetrack land is up for auction again WatertownDailyTimes.com The land was foreclosed earlier this year on a complaint filed by Kenneth P. Silverman, the bankruptcy trustee of Agape World, which financed the $2.1 million mortgage for Northway Island Associates. The land is an asset of Agape World, whose owner, ... |