ABI Attorney and Judge: Discussion of new bankruptcy laws

[bkfiler]

here is a link to discussion from attorney and judges on the new bankruptcy laws:

http://www.abiworld.org/consumerlive/consumerprogram.html

i'm glad im not filing under the new rules... yet lol

[Genenco]

Not to worry!

here is a link to discussion from attorney and judges on the new bankruptcy laws:

http://www.abiworld.org/consumerlive/consumerprogram.html

i'm glad im not filing under the new rules... yet lol

I've also been reading comments by lawyers who say that still 80% who file for Ch 7 will still make it through.

It leaves hope for you and me

[robivi3]

I read over my former Attorney's website today. He states that it will be much harder to file Chapter 7 and that most people will not qualify. This man was very upfront with me and did alot of extra work on my Chapter 7. Personally, I would tend to believe him.

80% of those who file could mean after the lawyers have weeded out the unqualified.

[Genenco]

Yes, that's correct

I read over my former Attorney's website today. He states that it will be much harder to file Chapter 7 and that most people will not qualify. This man was very upfront with me and did alot of extra work on my Chapter 7. Personally, I would tend to believe him.

80% of those who file could mean after the lawyers have weeded out the unqualified.

More then likely this was their meaning..I mean after all, I nearly went through a lawyer who ENCOURAGED me to lie? Man, I doubt he'll be in this business long..Maybe better off as a defense attorney

I remember the last Bk where the lawyer and I went over all aspects, but since I was unemployed (It took me 2 months to get the cash for him paid) it was a easy file.

But knowing I'll NEVER have anywhere the median income of any state, I'm not worried about passing the means test and I'm once again converting to a previous "Simplistic" life which I lived years ago.

All in good time for things to be done, not rushing through today.

[FoolAndHisMoney]

It just seems to me (and maybe I'm being a bit naive) that most of the changes made will pretty much discourage fraud and abuse which most of us think is wrong anyway. There are more hoops to jump through, but it "should" still allow the honest debtor to get help from the courts in one form or another. I know this won't offer a dirt poor debtor much solace since they may not be able to afford a lawyer, but at the same time most dirt poor debtors are probably judgement proof anyway and can buy some time before creditors take action. They can also file Pro se and do a lot of homework or find a lawyer willing to work Pro bono.

The impression I got from the changes mostly from the media is that "we can no longer file for bankruptcy after Oct 17, so we must rush to do it before the changes". It's enough to scare anyone to death especially with new cc minimum requirements.

My hopes are that congress reviews this process and fixes something that may need fixing and adjusts the IRS living standards fairly.

Just my 2 cents.

Good reading. Thanks Bkfiler!

[FoolAndHisMoney]

Salvage yard?

the Code now explicitly adopts retail value for most consumer personal property items.

I'm wondering how the retail value of assets will come into play. This won't matter too much I guess for a chapter 13 since the creditor will get something, but as far as a chapter 7 redemption on household items the courts will look like a salvage yard. If someone bought a sofa a few years ago for $1600 and the garage sale price is $150 today, does this have to be valued at the current cost of a new couch? Valuing property like this would create more non-exempt assets for liquidation which is what's intended. If so then instead of a debtor redeeming some of this non-exempt property they will just surrender it, save up money and buy new for the same $$ that the trustee would want. If this happens then with a million or more people filing there will be a land fill of old furniture, lamps, etc. being surrendered.

Between this and the limited car cram downs I think more people will surrender more assets leaving trustees with a flood of junk to auction and get little money for all the work.

This is understandable for an item such as a $5000 plasma TV, high end audio system or motor cycle.