Did the New Bankruptcy Laws Make it Harder to File Chapter 7 Bankruptcy? While the Chapter 7 means test was intended to tighten the qualification requirements to file Chapter 7 bankruptcy, most people have found that this form of bankruptcy protection is still available to them even after the new law. For those people who may not qualify for Chapter 7 bankruptcy, Chapter 13 bankruptcy may still very well be an option. If it seems like the bankruptcy process is more complicated than ever, that's because it is. New laws passed by Congress have seen to that. But don't worry, because we can help sort out your bankruptcy problems. New bankruptcy reforms enacted in 2005 have increased all of our burdens, changing the requirements for bankruptcy filers and demanding more detailed research and documentation of bankruptcy services. What is the Chapter 7 Bankruptcy Means Test? Beginning in October of 2005, people who want to file for Chapter 7 bankruptcy have to pass what is known as the "Chapter 7 means test". The Chapter 7 means test is a formula to determine whether or not the consumer should have enough money available to make some minimal payment to creditors in a Chapter 13 bankruptcy plan. The goal is to reserve Chapter 7 bankruptcy for those who really have no means to pay, and to push those who have available income into Chapter 13 bankruptcy plans, so that their creditors will receive at least partial payment. As the means test can be a bit complicated, you’ll want to enlist our help. . Do I need to take a Credit Counseling course & Debt Management Counseling course that the Court Approves? Yes, a list of approved pre-filing Credit Counseling courses are available directly from the U.S. Trustee’s list at: www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm. A list of approved pre-discharged Debt Management courses: http://www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm NOTE: After viewing the court approved list, use your back arrow to return. Is Credit Counseling & Debt Management Expensive? The cost will vary depending on factors, including where you live and whether you sign up for an online, phone or live course. The course runs from free to $50. If you are filing a joint petition with your spouse, then you each need to take the course & get a certificate. When Should I Complete My Credit Counseling Briefing & Debt Management Counseling? You must have completed the credit counseling briefing within six months before you file the bankruptcy petition. In addition, bankruptcy filers must obtain debt management counseling before being allowed to complete the bankruptcy process. In order to comply with these credit counseling and post-discharge debtor education requirements, filers must work with agencies that have been approved by the U.S. Trustee Program |
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