| Bankruptcy laws are state specific but definitely not | | | | without a need for repayment. But the new changes |
| without federal reference. Of late, they are tightened | | | | to bankruptcy law don't let debtors file Chapter 7 |
| to raise minimum credit card debt payments, as a | | | | bankruptcy easily making it harder to qualify for |
| first step. Personal bankruptcy laws have certain | | | | Chapter 7 debt relief. You are required to meet what |
| requirements for the debtor too, as most of these | | | | is known as 'means test' to provide for qualification |
| are taken from federal laws, title 11 of the United | | | | under federal bankruptcy laws. On the other side, |
| States Code. However, the primary goal of the | | | | some commentators feel that Chapter 7 ruins credit |
| bankruptcy laws is to provide debtors an opportunity | | | | card companies. |
| to start afresh. | | | | There is a second type of bankruptcy filed by most |
| All major changes to bankruptcy laws are in place | | | | consumers -Chapter 13. With chapter 13, there is a |
| already. So what can you expect? They are | | | | common myth that it discharges and eliminates all |
| specifically targeted at preventing abuse of it; and try | | | | debts. However protection under the Chapter 13 |
| to limit the homestead exemptions. Most of the | | | | bankruptcy laws is immediate. Bankruptcy attorneys |
| changes are technical and procedural in nature making | | | | that deal with chapter 13 and chapter 7 opine that |
| them tougher. The new changes are reflections of | | | | these are specific consumer bankruptcy laws and |
| law makers' concern to a country with millions in debt | | | | that chapter 13 is the most popular bankruptcy law. |
| beyond their ability to payback. | | | | The reason is chapter 13 helps you to clear off debts |
| From the perspective of an ordinary citizen, | | | | systematically. |
| bankruptcy laws can be taken as part of a safety | | | | While some of the new clauses in bankruptcy laws |
| net enjoyed in America. Because, they ultimately | | | | are good, not all can be so effective. They are rather |
| provide you relief from debts and save you from | | | | are confusing. There are a number of other things |
| sliding further into crisis. If you, the debtor, are | | | | within the federal bankruptcy laws which need to be |
| honest, take it for granted that the new bankruptcy | | | | taken care off in respect of their complex nature. It |
| laws are intended to provide you with a fresh start | | | | is observed that bankruptcy laws are misused as |
| to get free from old obligations and debts. But | | | | protective shields to prevent creditors, in some cases |
| simultaneously, if you are out to take advantage of | | | | to eliminate them altogether. |
| the changed bankruptcy laws, you will be eliminated | | | | Of course, there is a growing feeling that the |
| ruthlessly. What point this drives home is that- | | | | changed bankruptcy laws are complex to file and you |
| bankruptcy certainly helps you out of financial mess | | | | need to be advised by an experienced bankruptcy |
| but it simply is not charity. They are in place to | | | | lawyer. However the principle behind the |
| provide you and your business an opportunity to | | | | amendments is encouraging risk-taking by reducing |
| pull-up your socks and discharge the debt before | | | | the fear of negative impact of failure. The |
| getting a fresh start. | | | | bankruptcy laws are made complex to avoid easier |
| What is chapter 7 bankruptcy? Most of it deals with | | | | elimination of your debt in a bankruptcy and make |
| consumer bankruptcy, concentrating on the liquidation | | | | you payback anyway. The bottom line: bankruptcy |
| process under the federal bankruptcy laws. So what | | | | laws provide new dimension to the approach of |
| is this Chapter 7 Bankruptcy? Chapter 7 cases are no | | | | business people to obligations after a failure. |
| asset involved cases, and debts are eliminated | | | | |