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Chapter 11 Bankruptcy Article
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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.
Chapter 11 Bankruptcy News
Houghton Mifflin files Chapter 11 bankruptcy - Reuters
 Toronto Star | Houghton Mifflin files Chapter 11 bankruptcy Reuters ... 21 (Reuters) - Houghton Mifflin Harcourt Publishers Inc, whose textbooks have been a staple in American schoolhouses for decades, filed for Chapter 11 bankruptcy protection on Monday after agreeing with creditors to eliminate $3.1 billion of debt. Houghton Mifflin files for Chapter 11 bankruptcy protection to wipe out $3.1 ... Houghton Mifflin Harcourt Publishers Files Chapter 11 Bankruptcy Publisher Houghton Mifflin Files for Chapter 11 |
Gunthers Transport owner files for Chapter 11 bankruptcy - Baltimore Business Journal
Gunthers Transport owner files for Chapter 11 bankruptcy Baltimore Business Journal The owner of a Hanover trucking company that federal trucking regulators forced off the road last year has filed for Chapter 11 bankruptcy protection. Mark David Gunther Sr., owner of Gunthers Transport and Gunthers Leasing Transport Inc., ... |
Reno's Silver Legacy casino in bankruptcy protection - Modesto Bee
 News10.net | Reno's Silver Legacy casino in bankruptcy protection Modesto Bee By Dale Kasler With a big push from Northern California's Indian casinos, one of Reno's largest casinos has fallen into Chapter 11 bankruptcy protection. The Silver Legacy, once hailed as the savior of Reno's troubled casino industry, ... Silver Legacy the latest gaming property to seek a fresh financial start Reno's Silver Legacy Resort files for bankruptcy MGM Property Files for Bankruptcy |
Houghton Mifflin files for bankruptcy protection - The Seattle Times
Houghton Mifflin files for bankruptcy protection The Seattle Times Houghton Mifflin Harcourt Publishers Inc. has filed for Chapter 11 bankruptcy protection after reaching an agreement to eliminate $3.1 billion of its debt. The Associated Press No comments have been posted to this article. |
Contour Med Files Chapter 11 Bankruptcy - Arkansas Business Online
Contour Med Files Chapter 11 Bankruptcy Arkansas Business Online By Mark Friedman Contour Med Inc. of Little Rock filed for chapter 11 bankruptcy reorganization on May 11 and needed an emergency loan of $40000 just to keep its doors open. It listed debts of at least $5.98 million, but it could be as high as $10 ... |