A Friend Of Mine Is Thinking Of Declaring Bankruptcy..how Fast Does One Recover?
A friend of mine is thinking declaring bankruptcy as an option to start over..I don’t know anything about it except that it stays on your record for 10 years..How fast can one recover and start over?
Tags: Bankruptcy..how, Declaring, Does, Fast, Friend, Mine, Recover, Thinking
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October 13th, 2009 at 1:51 pm
10 years on your record, BUT, answering forms, etc.. ask “HAVE YOU EVER DECLAIRED BANKRUPCY? ”
I have over 65k in debt, and have settled it with debtxs.com. They work out the debt, and you settle on it. I chose NOT to declair bankruptcy and have corrected my issues in less than 2 years, and get to purchase my 2nd house – in three months.
The Debt is now also not wiped away, you still have to pay it, as they changed the laws Jan 1. 2007! really weigh your options! There are alternative solutions and you don’t wreck your future as badly. I am NOT saying debt consolidation, I am saying debt Negotiation… Big difference.
October 13th, 2009 at 1:56 pm
New laws are in place now that make it harder to declare and it still doesn’t relieve the person from paying back the debts altogether. It should be avoided at all costs.
Now that the new bankruptcy law is in effect, the landscape has changed for those who are considering bankruptcy. Some filers with higher incomes won’t be allowed to use Chapter 7, but will instead have to repay at least some of their debt under Chapter 13. All debtors will have to get credit counseling before they can file a bankruptcy case — and additional counseling on budgeting and debt management before their debts can be wiped out. And, because the law imposes new requirements on lawyers, it may be tougher to find an attorney to represent you in a bankruptcy case.
Here are some of the most important changes.
Restricted Eligibility for Chapter 7
Under the old rules, most filers could choose the type of bankruptcy that seemed best for them — and most chose Chapter 7 (liquidation) over Chapter 13 (repayment). The new law will prohibit some filers with higher incomes from using Chapter 7.
How High is Your Income?
Under the new rules, the first step in figuring out whether you can file for Chapter 7 is to measure your “current monthly income” against the median income for a household of your size in your state. If your income is less than or equal to the median, you can file for Chapter 7. If it is more than the median, however, you must pass “the means test” — another requirement of the new law — in order to file for Chapter 7.
The Means Test
The purpose of the means test is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to make payments on a Chapter 13 plan. To find out whether you pass the means test, you subtract certain allowed expenses and debt payments from your current monthly income. If the income that’s left over after these calculations is below a certain amount, you can file for Chapter 7.