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New Bankruptcy Laws
Impact of New Bankruptcy Laws in
Texas
?
New bankruptcy laws which went into effect on October 17, 2005 had the effect of applying a means test to determine whether individuals were eligible to eliminate their debt by filing Chapter 7 bankruptcy. It was declared a major success by the credit card industry. One of the myths about the new bankruptcy laws, though, is that many people now believe they can only file Chapter 13 bankruptcy or a debt settlement plan to repay their debt. In truth, the new bankruptcy laws have had very little effect on individuals. The large majority of people still qualify to file Chapter 7 to completely eliminate their credit card debt.
Haroon Law Group is ready to help you with all of your bankruptcy and debt relief needs. Contact us today to discuss your debt relief needs with an attorney who cares about helping you get a fresh start.
Free initial consultation about your bankruptcy needs
We accept all major credit cards and payment plans are available
Conveniently located in Plano, a suburb just North of Dallas, on I75
Central Expressway @ Park Blvd Exit in the Bank of
America
Building
.
Any one considering filing for bankruptcy will be well advised to understand how the new means test applies to their financial situation. A basic means test is now used to determine and to give you a general idea of how the new bankruptcy laws may affect you. Of course, the results of this example test are not meant to be the final word. We will give you honest answers about whether bankruptcy is right for you.
Major points to be kept in mind concerning new bankruptcy laws are:
- Within six months before filing, you must take an approved financial management course.
- If your current monthly income is less than the median income in your state of residence, you may be eligible to file for Chapter 7 debt elimination of all of your unsecured consumer debt. You may not discharge tax debt, or student loans.
- If your current monthly income is more than the median income in your state of residence, you must apply a means test:
Below is a simplified version of the new Means Test
Step 1: Subtract your $ monthly expenses from your $ monthly income = N
Step 2: N x 60 = X
Step 3: If X of step 2 is >$10,000, or >25% of your consumer debt, then you are only eligible to file Chapter 13 debt reorganization
If X of step 2 is <$6,000, or <25% of your debt, then you are eligible to file Chapter 7 for consumer debt to eliminate your unsecured debt.
To learn more about our debt relief services, please visit these pages:
- Chapter 13 bankruptcy to reorganize debt
- Chapter 7 bankruptcy to eliminate debt
- Debt settlement plans
- New bankruptcy laws
- Bankruptcy and Senior citizens
We will help you understand the new bankruptcy laws, ways to stop harassing
collection calls, and find possible alternatives
to bankruptcy. Contact our offices
in