How will the new bankruptcy laws impact me?


The recently enacted Bankruptcy Protection Act of 2005 enforces more stringent regulations on personal bankruptcy cases. These regulations encompass obligatory debt counseling, income limitations for eligibility, and the requirement for higher-income debtors to partially repay their debts before filing. Depending on your financial resources, current income, and personal circumstances, it is possible that you may not qualify for Chapter 7 bankruptcy, which discharges most of your debts. Alternatively, you might be compelled to pursue Chapter 13 bankruptcy, which necessitates adherence to a payment plan. Prior to commencing the filing process, it is crucial to consult with a knowledgeable professional well-versed in bankruptcy laws, to obtain a clearer understanding of what to anticipate.


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