Going for Broke, After Surge, Bankruptcy Filings Have Slowed Following New Law
February 17, 2006
Attorney Michael Katz compared last fall’s surge in bankruptcy filings to a particularly good automobile rebate – though buying a car is much more enjoyable.
Law firms braced for a rush of filers once it became known that bankruptcy laws would be overhauled last October. The most notable change of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 involves who is allowed to file under Chapter 7.
Under the new law, many filers with higher incomes will no longer be allowed the option of eliminating their debts under Chapter 7 (which eliminates credit card and other debt while allowing the filer to retain a house, car, and other assets), but will be forced to repay at least some of their debt under Chapter 13…
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by: Joseph Bednar
January 23, 2006