New Bankruptcy Law

<h1>New Bankruptcy Law</h1>Author: <a title="Richard Mathew" href="http://www.articlesbase.com/authors/richard-mathew/67536.htm">Richard Mathew</a> It is imperative that both the debtors and creditors should be aware of the new bankruptcy laws so that they can save themselves from any unwanted future mishap. The U.S. Congress has made enormous changes that came into existence from October 2005.
 
There are some facts that are related to bankruptcy which are the main causes that bankruptcy law needed to be changed. Some of the facts are:
 
The filing of bankruptcy has just increased twice in the year 1995-2004 and the credit card companies were earning tripled profits. Approx. 80% of the people above the age of 60 had lost their job due to bankruptcy. Last but not the least, the filers of bankruptcy had the median income of $28,000.
 
Now let’s go through with the new changes in the bankruptcy law. If you are filing for bankruptcy, then the bankruptcy court can ask you to go through the Means Test first. On the basis of your result only, the court will conclude which bankruptcy will suit your case the most. As per the test, it will be assessed that how much money you are holding after paying off the necessary expenses. If your money is less than the median monthly income of the state, then you are qualified for the Chapter 7 bankruptcy. On the other hand, if your money is more than the median monthly income of the state, then court will ask you to file for Chapter 13 bankruptcy. The unfortunate part is that the day to day necessary expenses will be decided by the IRS instead of you. The court and IRS will allow you minimum allowable expense only.
 
These above bankruptcy laws will be a great help to you before filing bankruptcy so that you can estimate which chapter is best for you.
 About the Author: Richard Mathew is a freelance writer and is writing articles from couple of years. He wrote articles on finance and other topics. He want to share knowledge about various financial aspects and also want people to gain benefit from it. He is currently writing for many sites like <a href="http://www.bankruptcyinfo.org.uk"><a href="http://www.bankruptcyinfo.org.uk" target="_blank">www.bankruptcyinfo.org.uk</a></a> , <a href="http://www.creditcarddebthelp.me.uk"><a href="http://www.creditcarddebthelp.me.uk" target="_blank">www.creditcarddebthelp.me.uk</a></a> and more.....Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/credit-articles/new-bankruptcy-law-473239.html" title="New Bankruptcy Law">New Bankruptcy Law</a>

It is imperative that both the debtors and creditors should be aware of the new bankruptcy laws so that they can save themselves from any unwanted future mishap. The U.S. Congress has made enormous changes that came into existence from October 2005.

There are some facts that are related to bankruptcy which are the main causes that bankruptcy law needed to be changed. Some of the facts are:

The filing of bankruptcy has just increased twice in the year 1995-2004 and the credit card companies were earning tripled profits. Approx. 80% of the people above the age of 60 had lost their job due to bankruptcy. Last but not the least, the filers of bankruptcy had the median income of $28,000.

Now let’s go through with the new changes in the bankruptcy law. If you are filing for bankruptcy, then the bankruptcy court can ask you to go through the Means Test first. On the basis of your result only, the court will conclude which bankruptcy will suit your case the most. As per the test, it will be assessed that how much money you are holding after paying off the necessary expenses. If your money is less than the median monthly income of the state, then you are qualified for the Chapter 7 bankruptcy. On the other hand, if your money is more than the median monthly income of the state, then court will ask you to file for Chapter 13 bankruptcy. The unfortunate part is that the day to day necessary expenses will be decided by the IRS instead of you. The court and IRS will allow you minimum allowable expense only.

These above bankruptcy laws will be a great help to you before filing bankruptcy so that you can estimate which chapter is best for you.

Richard Mathew is a freelance writer and is writing articles from couple of years. He wrote articles on finance and other topics. He want to share knowledge about various financial aspects and also want people to gain benefit from it. He is currently writing for many sites like www.bankruptcyinfo.org.uk , www.creditcarddebthelp.me.uk and more.....

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/credit-articles/new-bankruptcy-law-473239.html

Article Tags: Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Bankruptcy Filing, Bankruptcy Law

Related Articles
Related Q&A

Latest Credit Articles
More from Richard Mathew

Tips for Establishing & Maintaining Good Credit

By: Tim Wolfe | 30/11/2009
How to build good credit. After any successful undertaking to repair bad credit the next goal should be to lay the foundation forand maintain good credit. The better your credit the more money you save over a lifetime. Use the following information as a "guideline" when building good credit. The reporting agencies have a computer model that forms the credit scores using 40 different criteria. The models differ for each repository and not all financial institutions report to all ...

How Credit Repair Course Help?

By: mark garcia | 29/11/2009
Are you having problems with your finances? There are credit repair courses available that teach you how to repair your credit and get back on track financially. These courses many times are free and can be taken by anyone. The entire purpose of the courses is to help consumers take control of their finances by teaching them about how to manage their money and learning different methods of spending and saving.

Are You Worried About Credit Card Debt

By: Tom | 29/11/2009
Properly every one of us has some sort of credit card debt, but when do we know that it’s spiralling out of control? Well one way is if you’re pay more than 15% of your monthly salary to your credit card bills then start to worry

Credit Score Improves by Paying on Time

By: Tom | 29/11/2009
It may seem obvious, but one of the easiest things you can do to improve your credit score is to start paying your bills on time.

Credit Reports! When You’re Not Watching Your Credit, Who Is?

By: Tom | 29/11/2009
This may be old news, or this may be information that has just come to light for you, but your credit and consumer habits are being monitored, and unless you take some action to obtain the necessary credit reports, you more than likely don’t know if you’re credit worthy or not!

Ways to Find Credit Card Debt Relief

By: Emily Onedge | 29/11/2009
Here are some ways to find credit card relief. Credit cards are a great way to pay for almost anything. But that convenience comes at a big price. Today, high credit card interest rates have many people fighting to make their monthly credit card payments.

The benefits of using pre-paid travel cards when travelling abroad

By: Jonathan Phillips | 29/11/2009
A guide to saving money whilst travelling by buying your currency up front using a pre-paid travel card, accepted by establishments everywhere an ordinary credit card is, with all the safety and convenience a credit or debit card provides.

Credit Repair Through Debt Consolidation

By: Tom | 29/11/2009
Although everyone's economic status and situation is particular, almost all of us are in some sort of debt at any given time. This can mean small debts like credit card bills or in-store financing, as well as larger ones like outstanding loans and mortgages. What this means is that almost everyone is dependent on being allowed a certain amount of credit, and without credit many things that you take for granted will become difficult. The key to your credit status at any given ...

Get Benefited With Online Tax Advice

By: Richard Mathew | 03/10/2008 | Taxes
Getting information about taxes is as important as paying taxes. Receiving right and true advice can help you to pay less IRS, get you a larger refund and achieving other monetary goals.

Acquire Measures to Solve Problem With Credit Card Debt Help

By: Richard Mathew | 23/09/2008 | Credit
Credit cards are getting very popular these days. When you have credit card in your pocket, there is no requirement of holding cash. In this way it saves you from the fear of thefts. Credit card acts as a most appropriate option to pay off the bills without delay.

Ccj Help : Improve Your Credit Status

By: Richard Mathew | 12/09/2008 | Credit
A County Court Judgment or CCJ are court judgments for money. They are registered with the Register of County Court Judgments and do effect a persons credit.

New Bankruptcy Law

By: Richard Mathew | 05/07/2008 | Credit
It is imperative that both the debtors and creditors should be aware of the new bankruptcy laws so that they can save themselves from any unwanted future mishap. The U.S. Congress has made enormous changes that came into existence from October 2005.