Bankruptcy Rules Changes Puts Filers In Rush
POSTED: 6:10 am MDT October 15, 2005
UPDATED: 6:18 am MDT October 15, 2005
ALBUQUERQUE, N.M. -- Time is ticking away for bankruptcy filers.
On Monday, new rules take effect that could make people pay up.
So, some are rushing to get in their paperwork, before the deadline.
Bankruptcy court employees are working overtime dealing with a record number of filers before the rules change.
"I will do more work in the way of business in the next two weeks than I'll do almost all year," said bankruptcy attorney Dennis Banning.
With the new bankruptcy changes, anyone who earns an above average income will be barred from filing Chapter 7, and will instead have to go with the more restrictive Chapter 13. With the main difference being a requirement for a five-year repayment plan.
Another new rule is that within six months of filing for bankruptcy, credit-counseling sessions are required.
U.S. bankruptcy Judge James Starzynski said without attorneys walking people through the process, it can take the court lots of time to make sure people understand what they are getting into.
POSTED: 6:10 am MDT October 15, 2005
UPDATED: 6:18 am MDT October 15, 2005
ALBUQUERQUE, N.M. -- Time is ticking away for bankruptcy filers.
On Monday, new rules take effect that could make people pay up.
So, some are rushing to get in their paperwork, before the deadline.
Bankruptcy court employees are working overtime dealing with a record number of filers before the rules change.
"I will do more work in the way of business in the next two weeks than I'll do almost all year," said bankruptcy attorney Dennis Banning.
With the new bankruptcy changes, anyone who earns an above average income will be barred from filing Chapter 7, and will instead have to go with the more restrictive Chapter 13. With the main difference being a requirement for a five-year repayment plan.
Another new rule is that within six months of filing for bankruptcy, credit-counseling sessions are required.
U.S. bankruptcy Judge James Starzynski said without attorneys walking people through the process, it can take the court lots of time to make sure people understand what they are getting into.
