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Announcements Feedback and Our Pub :: Bankruptcy Abuse Prevention Consumer Protection Act 2005

Author: jessica
Subject: Bankruptcy Abuse Prevention Consumer Protection Act 2005
Posted: Fri Jul 29, 2005 6:39 am (GMT 0)
Topic Replies: 0

The congress has passed the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" this spring. It will be effective from October 17th, 2005. It has been enacted so that people cannot avoid paying their debts when they can at least pay a part of it. The major changes to this law are:

Means Test:
These are tests performed to identify the ability of the debtor to clear their debts. This is done to find out whether a family is earning above the average income in their state. It is also found if the family has sufficient extra income to pay a part or whole of their debts.
Proof of Income:
Debtors intending to file bankruptcy must provide the government with the most recent tax returns.
State Exemptions:
A minimum of 2 years residency is needed to take advantage of state exceptions.
Counseling:
Debtors need to go through a federally approved credit counseling program within six months before filing the bankruptcy.
Child support and alimony:
Payments regarding child support and alimony have been given top priority when dividing excess income.

For Further references :
http://www.whitehouse.gov/news/releases/2005/04/20050420-5.html
http://www.utb.uscourts.gov/UTBC_localrules2005/

For the full story see:
http://www.mortgagefit.com/discuss/about705.html
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