The new law allows you to determine whether you are truly in need of Chapter 7 bankruptcy. However, there are numerous attorneys who disagree with this, and numerous consumers who are unhappy with the new law.
The new bankruptcy law stipulates that you must complete a credit counseling course within six months prior to filing for bankruptcy.
You are not required to be physically present in the classroom; you can participate via phone or online seminars. Before filing your petition for bankruptcy with the court, you must include a certificate proving completion of the required course. If you are unable to complete the course prior to petition filing, the court may grant you an extension.
In accordance with the new bankruptcy law, if a creditor requests your tax returns, you will also be required to provide pay receipts for the two months prior to filing Chapter 7 bankruptcy. If your Chapter 7 bankruptcy petition is granted, you are also required to take classes in financial management so that you do not have to file an appeal with the bankruptcy court in the near future.
If you are still uncertain about your eligibility to file for Chapter 7 bankruptcy under the new bankruptcy law, take heart. A jurist has estimated that 97% of those who were eligible under the previous law will continue to be eligible under the new law. The remaining 3% may be required to meet additional requirements prior to eligibility.
The new bankruptcy law also prescribes a complex eligibility test for Chapter 7 bankruptcy, particularly if your income exceeds the state median income. If you fail this test, you may want to contemplate Chapter 13 because it includes a repayment plan.""
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