New Bankruptcy Law
Well, the Bankruptcy Reform and Consumer Protection Act was passed in 2005, and after a few years, I have found that the majority of our clients have remained relatively unaffected by its provisions. Sure, there's a lot more paperwork, but obtaining relief from debt is still there. I am surprised at how many people think Chapter 7 bankruptcy was "taken away" somehow. It hasn't been! Our clients now have to qualify under the "means test" to make sure they can file Chapter 7 without too many hassles. If you exceed the means test, Chapter 7 is still possible, but a complex calculation has to be performed to see if you still qualify. If you are wondering how much you can earn before these provisions affect you, you can check this site for general information:
http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm
We normally measure how much you've earned in the six months prior to filing, annualize that figure, and compare it to the numbers listed.
However, some of the laws dictating income and deductions available under the means test are no longer the same between states, and even WITHIN the state of Florida, due to differing judicial interpretation of the new law. Recent cases before the Supreme Court may change things again, so it is always best to speak to a competent professional in the area.
Chapter 13's have changed as well. The current law encourages Chapter 13 plans to be 5 years, rather than three. But, I had usually found the shorter plans under the old law were impractical for my clients anyway (the payments were often higher for a three year plan than a five year plan). Reducing car payments under the plan has become more difficult and is now tied to when the car was financed. There are also limitations on recently acquired Florida homesteads that may affect both chapters, and many other provisions, so, of course, it's always best to talk to us in person to allow us to properly advise you of your options.