In 2005 president George W.  Bush worked with Congress to pass the Bankruptcy Abuse Prevention and Consumer Act of 2005 known as the BAPCPA.  There are three main areas to the law that were put in place which directly changed and affected the way bankruptcy is handled from that point forward.  In the past you simply filed and were for the most part approved and pushed through.

With the new law in place you now have 3 additional areas that you must go through before being qualified for bankruptcy.  The Ticket In, Means Test, and Ticket Out Debtor Education sections have been added to the process.  These are mandatory sections to the process which must be completed for total approval.  As tedious as it sounds they aren’t that bad  and in some cases are even helpful to you.

The Ticket In Section must be completed a minimum of 6 months or less before applying for bankruptcy.  This is a program based on credit counseling and it must be done through a government approved non-profit agency that is licensed to perform the course. Areas covered would include budget planning, debt management, and they will help you evaluate your financial situation.  Take advantage of the time to plan your future. Read the full article →

If the financial strain you are under and the stress of creditor harassment is putting your stress level over the top, bankruptcy can often be an excellent option.  Of course you ultimately need to consult with an attorney but in almost all cases it will put a legal end to those threatening phone calls instantly upon beginning the proceedings. The collection agencies in business today have in many cases lost their moral compass with their efforts to obtain money for their employers.

There are laws that protect borrowers from these aggressive collection agencies.  The frustration from not being able to pay your bills is enough without having a relentless cold hearted maniac on the phone making it worse.  They are ruthless in their tactics and will call around the clock making demands.

Is not uncommon to be forced to change your number to escape the insanity.  Looking over your shoulder is a terrible feeling.  At this point you might want to seriously consider bankruptcy.  The laws are designed to provide you protection from creditors and their hired guns.

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When looking for chapter 13 bankruptcy information many want to know how it works first and if it’s right for them. Many opt for the cheaper chapter 7 bankruptcy for a variety of reasons. That being said a chapter 13 does make sense for plenty of people as well if they are looking to keep some of their assets such as their home.

The idea of a chapter 13 is that over the course of three to five years creditors will be paid in disbursements coordinated from a court appointed bankruptcy trustee. When the plan comes to an end all remaining debts are then discharged unless said portions of the debt are ineligible.

Per chapter 13 bankruptcy requirements anyone looking to file must attend a credit counseling session before moving forward. Upon completion of the course the debtor is forced to pay a fee which can vary along with documents stating information about the details of the debt, total income, creditor holdings and expenses. A trustee who is appointed by the court would then review your documents. At which point said trustee will communicate with creditors as well as the debtor. From there a meeting is set for the next step. Read the full article →

The best bankruptcy advice comes in the form of being aware of recent law changes. In between the years of 1994 to 2004 the rates of those filing for bankruptcy started to soar due to the fact that credit had became extremely easy to qualify for.  The rates of those filing for bankruptcy started to cause many to become very alarmed as rates skyrocketed to heights never before seen.  Well someone had to step in and relook at the situation to conclude what was causing such a tizzy. It became very clear that something needed to be done as to many people and businesses where filing for illegitimate reasons.

The good old government concluded that passing a new law would curb the problem. So they decided to pass the bankruptcy abuse prevention and consumer protection act. After this went into effect in 2005, the law caused quite a shakeup. Many proceedings changed as it became a bit more difficult to qualify from what it had been previously.

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