The bankruptcy laws in the United States have been changed several times in recent years. These changes have affected both Chapter 7 and Chapter 13 bankruptcy. The recent changes to the bankruptcy laws have made it more difficult to qualify for Chapter 7 bankruptcy and have also increased the length of Chapter 13 repayment plans. If you are considering filing for bankruptcy, it is important to speak with an attorney to discuss your options.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a liquidation bankruptcy, which means that your assets are sold to pay off your creditors. In the past, Chapter 7 bankruptcy was a relatively easy process to qualify for. However, the recent changes to the bankruptcy laws have made it more difficult to qualify for Chapter 7 bankruptcy.
One of the biggest changes to Chapter 7 bankruptcy is the introduction of the means test. The means test is a formula that is used to determine whether you have enough disposable income to repay your debts. If your disposable income is above a certain threshold, you will not be able to file for Chapter 7 bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a reorganization bankruptcy, which means that you create a repayment plan to pay off your creditors over time.
The recent changes to the bankruptcy laws have also affected Chapter 13 bankruptcy. One of the biggest changes is the increase in the length of the repayment plan. In the past, the maximum length of a Chapter 13 repayment plan was 5 years. However, the current maximum length is 8 years.
Other Changes
In addition to the changes to Chapter 7 and Chapter 13 bankruptcy, there have been other changes to the bankruptcy laws in recent years. For example, the BAPCPA, or Bankruptcy Abuse Prevention and Consumer Protection Act, was passed in 2005. This law made it more difficult for people to file for bankruptcy, and it also imposed new requirements on bankruptcy lawyers.
What Does This Mean for You?
If you are considering filing for bankruptcy, it is important to be aware of the recent changes to the law. These changes may affect your eligibility for bankruptcy, and they may also affect the type of bankruptcy that is right for you.
It is also important to speak with an experienced bankruptcy attorney before filing for bankruptcy. A Castle Law attorney can help you understand the recent changes to the law, and help ensure that you file for the best bankruptcy plan to meet your needs.
Our Kansas City bankruptcy lawyers and law firm want you to succeed after filing for bankruptcy and we’ll do everything in our power to make that happen. Give us a call at 816-842-6200 to speak with an attorney about your financial situation, or contact us online to schedule your free consultation.
