Macon GA Bankruptcy Lawyer | Bankruptcy Law Amendments in 2006
Macon GA Bankruptcy Lawyer – Bankruptcy Law Amendments in 2006
How it affects filingIn the ten year period, between 1994 and 2004, bankruptcy filing in the United States nearly doubled. The government’s response was to take a deeper look at reasons individuals and businesses were filing for protection. New statutes were passed to ensure that individuals and businesses had valid reasons for applying for bankruptcy.One of the primary rule regarding bankruptcy that was instated in the United States during 2004 was the Bankruptcy Abuse Prevention and Consumer Protection Act. This Act became effective in October 2005. This law created quite a stir in the financial and bankruptcy law arenas. In addition to it more difficult to qualify for Chapter 7 bankruptcy, or complete bankruptcy, this law imposes tougher rules and budgets on Chapter 13 debtors.One major change the Act is the necessity for filers to have filed tax returns for four consecutive years before qualifying for filing. Dischargeable debts, or those debts where personal liability is withdrawn by the legal system, is more difficult to come by. The law requires that filers prove good reason for dischargeable debt and mandates more debtors to shoulder responsibility with non-dischargeable debt budgets.Chapter 13 bankruptcy allows the debtor to keep certain assets upon proving only limited debt and a steady income. This bankruptcy is best suited for those filers who have gotten themselves into a major financial difficulty but still have means of paying for some assets. The court will set up a repayment schedule and budget that permits for full repayment of mortgages or car loans in three to five years.If repayment is simply not possible, the bankruptcy Act mandates that a filer file for Chapter 7 bankruptcy. This is often known as complete liquidation of assets, except for exempt items. Exempt items in a bankruptcy hearing are determined by the court and are usually items that are a necessity. The courts will distribute debts into two groups: non-dischargeable and dischargeable debt. Our attorneys are based in Macon, GA (Georgia) and help clients in Roberta, Warner Robins, Forsyth, Byron-Centerville, Culloden, Fort Valley, Haddock, Jeffersonville, Lizella, Perry, Gray, Bibb County, Monroe County, Jones County, Crawford County, Peach County, Twiggs County, Ba