How Do You Interpret The Bankruptcy Act Of 2005?
New bankruptcy laws were enacted on Oct. 17, 2005, that include more stringent guidelines for individuals filing for bankruptcy. These changes were made to help prevent individual bankruptcy filing abuse. It is important to interpret the new laws correctly to know the type of bankruptcy to file, otherwise you will waste both time and money. Recognize the differences between types of bankruptcy filings. Chapter 7 bankruptcy deals with unsecured debt. Chapter 11 pertains to bankruptcies for businesses and Chapter 13 bankruptcy is a request to not make payments on your debt while a debt restructuring plan is devised. Understand that the debt that can be included in Chapter 7 bankruptcy is limited. New laws state that the only debt that can be included in a Chapter 7 bankruptcy is limited to credit cards and other unsecured loans. Learn the income qualifiers. If the bankruptcy court determines that you have enough income to repay your debts, you cannot file for Chapter 7 bankruptcy. Instea
