Do You Want Help Deciphering The New Bankruptcy Code?

Recently, the United States bankruptcy code was changed to make for the debtor to pay off the debt more difficult it is. As a way for debtors to make more responsible case as opposed to clear the debt they simply want to sign a contract of repayment is increased, people urged these changes. Amount of debt that creditors had to write-off simply fiscal responsibility personal as was the lowest ever, was beginning may cause problems for the economy. As a result, Congress enacted a major reform of the bankruptcy code in the first in nearly three decades. 

New bankruptcy code brought Consumer Protection Act of 2005 (BAPCPA) and bankruptcy abuse prevention, but the changes of the bankruptcy code is not something new for the citizens of the United States. The Congress, since 1801, to make changes to rules and regulations that govern the relationship between debtors and creditors have been approved. Since then, lawmakers have been amended many times the bankruptcy code. However, in nearly two decades, changes in 2005, created the most important change in the code. 

In April 2005, the new regulation some, President Bush signed into law to be added to the bankruptcy code of the existing. Under the new bankruptcy regulations, applicants debtor, you must meet certain requirements: any form of bankruptcy protection. First, a new bankruptcy petition debt, you must complete a financial counseling course. Many of the bankruptcy filing because due to the financial management of irresponsible individuals, counseling course is designed to help people to recognize, to change the behavior of their spending. Statistics filed for bankruptcy, it indicates that many people will do it again in the future, this also helps to prevent the bankruptcy of the future. 

New bankruptcy law is designed to prevent a debtor from filing bankruptcy specifically. In addition to this, it also, they, they are the first place are encouraging to see the spending habits and their finances in order to determine why the went into the predicament. The new code, it is possible to achieve this is one way is that, before it is submitted to the court to request a signature Lawyers bankruptcy petition. In many cases, in the case of suspected abuse in particular, lawyer, is required to conduct a survey on financial debtor. It is evaluated to determine income person whether the repayment by other means as well in debt. 

The debtor, that to submit a bankruptcy Chapter 7 debt has simply discharge is more difficult other restrictions of the new bankruptcy code. The new regulations, in most cases, you are forced to bankruptcy Chapter 13, you must debtor to repay the debt payment plan and schedule. This process, court-appointed trustee to handle the finances of the debtor is involved, is delegated to the creditors a certain percentage of their regular income. Repayment schedule is arranged in general debt as paid within five years. Chapter 7 without any form of repayment, under the old bankruptcy code, however, it was much easier to simply submit the debt is erased debtor. 

October 17, 2005, I saw the new guidelines to the bankruptcy code. Because debt was beginning to cause a strain on the economy in large numbers, because there is a change in these long-overdue for a wide range of abuse of the system. without new guidelines and code to change the irresponsible behavior, to investigate the circumstances surrounding the event, and strive to prevent the number of bankruptcy filings. Hopefully, before you rush to the bankruptcy court, the debtor, and re-evaluate the financial management function and spending habits of them.