-------------------------------------------------------- http://www.nytimes.com/2005/09/27/business/27econ-new.html?th&emc=th September 27, 2005 The Old Laws and the New Following are some of the differences between the current law and the new law: The current law: * Was enacted in 1978 and became effective in 1979. * Lets individuals chose between two forms of bankruptcy. The more popular, Chapter 7, lets people discharge unsecured debts, such as medical bills and credit card debt. But they can lose assets that secure debts, like houses or cars. * In the other type, Chapter 13, individuals try to pay their debts over three to five years, with protection from their secured creditors. The new law: * Was enacted in April and becomes effective on Oct. 17. * Requires filers to provide more documentation. * Requires all filers to complete a federally approved credit counseling program. * Allows filers to use Chapter 7 only if a means test shows that they earn less than the median for their state, and do not have enough income, after living expenses, to repay at least $6,000 over five years. * Requires filers with more resources to file Chapter 13. * Gives judges discretion to let higher-income debtors file under Chapter 7, if they have "special circumstances." Copyright 2005 The New York Times Company -- http://cyberjournal.org "Apocalypse Now and the Brave New World" http://www.cyberjournal.org/cj/rkm/Apocalypse_and_NWO.html
