In recent years, bankruptcy has become the only way many people suffering unbearable debts. According to U.S. law, business, partnership, corporation or person like you and me, can claim exemption from the debt in Chapter 7 bankruptcy.
Last year, October 17, 2005 The new bankruptcy law was adopted and the means test was introduced. It will determine whether or not you are eligible to file Chapter 7 points behind the means test is to determine if you have enough money to pay back some of the money you owe to creditors, or can not, after all you are living and Expenses Allowed Taken account.
It is calculated by subtracting the cost of living in the IRS receives your monthly income.
If your earnings after the shows calculation or less Than The median income of the state you live, it could be authorized to file Chapter 7.
However, if your income seems to be greater if the median income of the state where you live, then the average income of the last six months is a consideration or may file a Chapter 13 bankruptcy law.
Some of these costs are taken into account:
1. Utility
2. Food
3. Clothing
4. Gas and waybills
5. Mortgage
6. Auto Loan
7. Maintenance
Eight. Tax
If on the other hand, after deducting all these expenses, you have at least $ 6,000 left to pay creditors back (the unsecured) over the next five years will be forced to file Chapter 13 instead.
Even under the Bankruptcy Act of 2005, you will need to file any tax return late, if you want to apply for Chapter 7
In the event that during the 180 days the application seems to be dismissed, because that intentional on your part to comply with court orders refusing to go to bankruptcy, Chapter 7
Even if you are the debtor has dismissed the previous case, their own free will after you apply the exemption from creditors through bankruptcy court, your petition is denied.
2005 bankruptcy law led to an important change in the individual are now forced to get credit counseling consultant certificate before they can file Chapter 7 bankruptcy.
credit counseling is to educate and help re your financial affairs. If you are serious about filing Chapter 7, you must provide the Court for a debt management plan developed by you during the credit counseling 180 days before filing for bankruptcy.
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