Tougher Bankruptcy Laws Take Effect October 2005
by: James Dimmitt
In just a few short weeks, President Bush’s Bankruptcy Abuse Prevention and Consumer Protection Act will take effect. In a nutshell, the new law, which goes into effect on October 17, 2005, makes it more difficult to cancel your debts under Chapter 7 Bankruptcy protection. Instead, consumers will find themselves having to file for Chapter 13 Bankruptcy protection and paying back their creditors over a five year period.
Here’s a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect –
Qualifying – Chapter 7 or Chapter 13?
To be able to qualify for protection under Chapter 7 bankruptcy, consumers will have to face a means test...