Discusses the means test as it will be applied under the new bankruptcy law, and why more people will be forced into Chapter 13 versus Chapter 7 after October 2005. Explains in simple language how the calculations will work, with examples for illustration.
Tougher Bankruptcy Laws Take Effect October 2005
Heres a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect –
The New Bankruptcy Law
With the new bankruptcy law in effect as of October 17, 2005, there is a lot of confusion with regard to the new “means test” requirement. The means test will be used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. The purpose of this article is to explain in plain language how the means test works, so that consumers can get a better idea of how they will be affected under the new rules.