Bankruptcy Reform: Can I Still File?
San Fernando Valley Lawyer
What Does Bankruptcy Reform Mean For Me?
Many people believe that they can no longer file bankruptcy as a result of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The good news is that the vast majority of people can still file bankruptcy — either Chapter 7 or Chapter 13. The bad news is that fewer people qualify for Chapter 7 because of the implementation of a means test to qualify debtors for this type of bankruptcy protection.
At my Los Angeles-area law firm, the Leventhal Law Group, P.C., I help people file bankruptcy, answering questions about their eligibility, assisting them with paperwork, and representing them at hearings. Call 818-347-5800 for a free initial consultation.
Changes in Bankruptcy as a Result of the 2005 Act
When discussing bankruptcy reform with clients, I talk about issues such as these:
- People contemplating bankruptcy must complete a government-approved credit counseling program within six months of filing.
- People hoping to file Chapter 7 — liquidation bankruptcy — must now take a means test to determine their eligibility.
- People must submit federal tax returns as evidence of income. If they have not paid taxes, they must do so before proceeding.
- The automatic stay is less comprehensive than before — certain legal actions, such as eviction, driver’s license suspensions, and legal actions for unpaid child support are no longer stayed by bankruptcy filings.
- Back child support and alimony take precedence over other debt.
- Debtors must take government-approved financial management education classes. Their debts cannot be discharged until they have completed a program.
Despite bankruptcy reform, Chapter 7 and Chapter 13 are excellent options for people overwhelmed by debt. Debtors can wrap up their debts and begin again.
Contact the Leventhal Law Group, P.C.. Call my Woodland Hills, California, office at 818-347-5800 to speak with a lawyer about bankruptcy reform and its consequences for you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.