Changing Chapter 7 Laws

Time is limited to file under the current Chapter 7 Bankruptcy code. The new Bankruptcy bill singed into law on April 20, 2005, will make it harder for people to wipe out most of their debts if their income is above the State median in which they live.

Many people in debt will have to work our repayment plans instead of having their obligations erased in bankruptcy court. According to the new law which takes effect in 6 months.

This new law may give banks and credit card companies victories that had eluded them for years. The stated goal of the new legislation which was pushed by the credit card, auto and retail industries, is to end abuse of the bankruptcy system.

onsumer advocates and legal experts who oppose the new law say the rise in bankruptcies reflects rising medical costs and the downside of credit card companies marketing to risky borrowers.

.Talk with an attorney to find out more about changing laws.