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Personal Bankruptcy - Politics, Business, Civil, History - Posted: 22nd Feb, 2016 - 8:25am
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Personal Bankruptcy
This is expected behavior for debt-heavy Americans. The problem, in my opinion, is that it will not teach them anything about handling their spending problems, *and* it will be more difficult to get out of a bad situation after October 17.
QUOTE Chapter 7 filings soar as new law approaches
By Michael Kinsman
UNION-TRIBUNE STAFF WRITER
October 9, 2005
Last fall, the Debt Relief Legal Clinic was the busiest bankruptcy law firm in San Diego, filing 90 personal bankruptcy cases in September and October.
This year, the firm expects to file more than 330 during the same period.
"I've never seen anything like it," said John Colwell, president of the firm, which operates five offices in the county. "Since the end of September, we've been referring people to other attorneys because we just couldn't handle any more cases."
That scenario is repeated from bankruptcy attorney to bankruptcy attorney in the region, as individuals scramble to file before the most sweeping bankruptcy reform in a generation occurs Oct. 17.
"There will still be bankruptcy after Oct. 17, but it's hard to tell that from the way people are acting," Colwell said.
The new law makes it more difficult for a debtor to qualify for Chapter 7 bankruptcy, the easiest and most expedient form of personal bankruptcy. Under Chapter 7, individuals are allowed to virtually wipe out all debt, except for items such as child support, student loans and most taxes.
Under the new law, individuals face a means test to qualify for Chapter 7. The test attempts to determine how much of their income goes into essential living expenses and if, after those expenses, an individual still can pay 25 percent of their unsecured debt obligation. If they can, and they make more than the state's median household income, they will not qualify for Chapter 7.
Source
By Michael Kinsman
UNION-TRIBUNE STAFF WRITER
October 9, 2005
Last fall, the Debt Relief Legal Clinic was the busiest bankruptcy law firm in San Diego, filing 90 personal bankruptcy cases in September and October.
This year, the firm expects to file more than 330 during the same period.
"I've never seen anything like it," said John Colwell, president of the firm, which operates five offices in the county. "Since the end of September, we've been referring people to other attorneys because we just couldn't handle any more cases."
That scenario is repeated from bankruptcy attorney to bankruptcy attorney in the region, as individuals scramble to file before the most sweeping bankruptcy reform in a generation occurs Oct. 17.
"There will still be bankruptcy after Oct. 17, but it's hard to tell that from the way people are acting," Colwell said.
The new law makes it more difficult for a debtor to qualify for Chapter 7 bankruptcy, the easiest and most expedient form of personal bankruptcy. Under Chapter 7, individuals are allowed to virtually wipe out all debt, except for items such as child support, student loans and most taxes.
Under the new law, individuals face a means test to qualify for Chapter 7. The test attempts to determine how much of their income goes into essential living expenses and if, after those expenses, an individual still can pay 25 percent of their unsecured debt obligation. If they can, and they make more than the state's median household income, they will not qualify for Chapter 7.
Source
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Post Date: 14th Oct, 2005 - 3:34am / Post ID: #
Bankruptcy Personal
What bothers me about this law is that it will primarily effect the little person, middle class america. The rich of the country will find a way to get around new laws with legal loopholes.
Some many people aren't realizing that they are going to be hurting their credit for a while by filling bankruptcy. I always consider bankruptcy a last resort, but so many consider very early on instead of finding better ways. Not that it isn't needed, but I think sometimes people hit it too early.
Post Date: 12th Sep, 2007 - 10:32pm / Post ID: #
Personal Bankruptcy History & Civil Business Politics
No limited to Personal Bankruptcy: Specific articles about different aspects of Bankruptcy, Bankruptcy Made Easy and general Bankruptcy information can be found at: www.international-discussion.net/bankruptcy
Post Date: 8th Jan, 2011 - 12:00am / Post ID: #
NOTE: News [?]
Bankruptcy Personal
1.5 Million Americans Filed for Bankruptcy in 2010
By Jerry White
As tens of millions are finding it impossible to pay their bills, the corporations and banks are raking in record profits, top executives are pocketing huge payouts and the richest 2 percent of the population is celebrating the tax cut handed to them by Obama and the congressional Republicans. Ref. Source 4
Post Date: 22nd Feb, 2016 - 8:25am / Post ID: #
NOTE: News [?]
Bankruptcy Personal
Medical Bills Are the Biggest Cause of US Bankruptcies: Study:
Bankruptcies resulting from unpaid medical bills will affect nearly 2 million people this year-making health care the No. 1 cause of such filings, and outpacing bankruptcies due to credit-card bills or unpaid mortgages, according to new data. Ref. Source 2a.
TOPIC: Personal Bankruptcy