| New Bankruptcy Law |
 Every year in the United States more than a million people file for bankruptcy. Although this is never an easy decision, the burden of unreasonable debt complicated by unemployment, medical debt, or snowballing credit card bills can make it a necessary one. Bankruptcy can help you get a fresh start, and you will be able to formulate a reasonable payment plan, liquidate your assets to pay your creditors, or otherwise receive the court's assistance in obtaining relief from the crushing burden of your debts. First, though, you need to know about how the new bankruptcy law may affect you.In late 2010, Congress proposed several amendments to the bankruptcy code. The New Bankruptcy Law included changes to Title 11 of the Federal Code, which governs all U.S. Bankruptcy cases. These changes went into effect in early 2011. Many of these rules affect Chapter 7 bankruptcy. The changes involved in the new bankruptcy law include providing less time for the debtor to file a list of creditors in all types of involuntary bankruptcy cases. Debtors who convert from one chapter of bankruptcy to another will have different amounts of time in which to file an exemption. Creditors who object to any discharge of debt in a Chapter 7 bankruptcy will be required to file a motion instead of a complaint. New default deadlines have been set for serving and responding to motions. Chapter 13 debtors will be allowed to cure their default and pay their home mortgages. Debtors will also now have more time to complete their personal financial management courses and file a statement of completion. However, debtors who have filed a Chapter 7 or a Chapter 13 case and who have failed to complete their courses within a timely manner will be notified by the clerk of the court that their bankruptcy case is at risk of being dismissed. Finally, one other new bankruptcy law change includes the clarification and allowance of the use of negative-notice procedures for claim objections. Because it can be difficult to stay on top of all new rulings as they occur, competent representation from our qualified bankruptcy attorney can help you determine the best course of action as you move through the bankruptcy process. Sources: http://www.uscourts.gov/RulesAndPolicies/FederalRulemaking/PendingRules.aspx#proposed0911 http://www.uscourts.gov/RulesAndPolicies/FederalRulemaking/PublishedRules.aspx |