consumer protection bankruptcy
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
The bankruptcy abuse and protection act was passed in April of 2005 with the initial goal of making it harder for consumers to get released from their debt under Chapter 7 and making people qualify under Chapter 13. With the intent of the 2005 act to make it harder for consumers to file bankruptcy, the actual result has not been much different. Many consumers are still able to qualify under Chapter 7 – close to 85%, because they can pass the “means test”. A “means test” was created to screen consumers for their income levels and a large percentage of people have been able to pass this test and continue on to file bankruptcy under Chapter 7.
The means test is based on the gross income of the filer over the last 6 months prior to filing. The consumer’s income is compared to the median income of people in their same state. If the consumer’s income is below the median income they automatically qualify for a Chapter 7 filing. If the consumer has income above the median income they next need to calculate their disposable monthly income (DMI) to see if they can qualify for a Chapter 13 filing. If the consumer’s DMI is less than $100 a month the consumer can file for Chapter 7, otherwise they need to file for Chapter 13.
The outcome of this act is that consumers must undergo mandatory credit counseling and education. They must also incur additional filing fee, attorney costs and are subject to fewer automatic protections. Small businesses have higher compliance costs and if you get categorized as Chapter 13 you will find yourself with an increased amount of debt repayment (compared to before the law was enacted).
About the Author
If you are considering bankruptcy you need to understand the bankruptcy means test so you can file for Chapter 7 bankruptcy the right way with a professional lawyer.
|
|
THE BANKRUPTCY ABUSE PREVENTION & CONSUMER PROTECTION ACT OF 2005 NY ST BAR 1C $33.99 |
|
|
Consumer Bankruptcy Protection in Michigan NEW $16.38 |
|
|
The Bankruptcy Abuse Prevention and Consumer Protection Act of 200.. – Paperback $3.63 |
|
|
The Bankruptcy Abuse Prevention and Consumer Protection Act of 200.. – Paperback $3.63 |
|
|
Bankruptcy and Debtor/Creditor: Examples & Explanations, 5th Edition $23.98 To keep pace with the recent major changes in bankruptcy law, noted author Brian Blum presents a completely revised edition of his popular study guide, Examples & Explanations: Bankruptcy and Debtor/Creditor. This comprehensive paperback is well known for its effectiveness in helping students understand the many rules, principles, and policies of the area. The book earns the loyalty of both studen… |
|
|
Asset Protection for Business Owners and High-Income Earners: How to Protect What You Own from Lawsuits and Creditors $12.47 Congratulations! You have worked hard for many years and own a booming business; or perhaps you are a successful doctor, attorney, CPA, or another high-income earner. Making that money was difficult; now, you have to create a strategy to keep it. Unfortunately, you are on the radar with pending lawsuits from other businesses, employees, business partners, past marriages, relatives, the government,… |
|
|
Credit Repair Kit For Dummies $6.90 Now, you can finally end the cycle of bad credit and get back on your feet by following the step-by-step advice and tools in Credit Repair Kit For Dummies, 2nd Edition. You’ll find out everything you need to know about creating a solid plan to get your credit back on track. You’ll discover how to find your credit report, review all of the information in it, and learn how you can repair and spr… |
