On April 14, 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, which was signed six days later by President George W. Bush. This act consists of changes to the U.S. Bankruptcy Code.
Credit Counseling
Anyone planning to file bankruptcy must contact a government-approved credit counseling program within 180 days prior to filing for bankruptcy. Also, the person filing must complete a debtor education course, which lasts between 45-90 minutes and can be taken over the phone or online.
Tax Returns & Proof of Income
You must provide the Trustee or Court with copies of your federal tax returns from the last year filed. Also, you have to provide copies of paystubs for the 60 days prior to your case being filed.
Domestic Support Obligations
Domestic Support Obligations include alimony, child supports and property distribution, in which these are given priority over just about every other creditor.
Means Test
This is a test to determine if a person is financially eligible for filing for Chapter 7 bankruptcy. Speak to a bankruptcy attorney to determine if you are financially eligible as this depends upon your household income in your state.
Time Restrictions
If you received a Chapter 7 discharge in the previous 8 years, you cannot file for Chapter 7 bankruptcy.
Although these new measures may seem to add more work to filing for bankruptcy, working with an experienced bankruptcy attorney in Jacksonville will help you understand and go through the process as quickly and hassle free as possible.
