Information About the New Bankruptcy Laws
New bankruptcy laws passed in 2005 make it more complicated to file for Chapter 7 bankruptcy. Debtors are now required to take a means test which determines their eligibility for Chapter 7. Those who do not qualify for Chapter 7 may still be able to file under Chapter 13.
To learn more about the new bankruptcy laws and how they affect your eligibility for Chapter 7 bankruptcy, contact Wilson-Goodman & Fong, P.L.L.C. Call an attorney in Gilbert at 480-503-9217 Toll Free: 800-409-2187 or Queen Creek at 480.686.9400.
How Will the New Bankruptcy Laws Affect Me?
The means test now determines whether you qualify for Chapter 7 bankruptcy. If you do not qualify for Chapter 7, you may still qualify for Chapter 13 bankruptcy.
Even if you have heard you may not be eligible for Chapter 7 bankruptcy, you may want to take the means test for confirmation. If you don't qualify based on income, you may qualify based on expenses.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a personal bankruptcy option that liquidates debt. An individual's eligibility for Chapter 7 is determined by a means test. A debtor may be required to sell off certain non-exempt assets to repay creditors.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a personal bankruptcy option that reorganizes debt. Chapter 13 is often called "wage earner bankruptcy", as those filing will be required to repay a portion or all of the debt based on income. The repayment plan is set for a period of between three and five years interest free.
Contact Us
For more information about filing for bankruptcy, contact a lawyer to schedule a free initial consultation.
Wilson-Goodman & Fong, P.L.L.C. is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.