Requirements Eased for Hurricane Victims

[bkfiler]

Requirements Eased for Hurricane Victims

Following Hurricanes Katrina and Rita, the United States Trustee's office announced special enforcement guidelines for debtors affected by natural disasters. These guidelines are an effort to lessen the impact of the new law on filers who may be displaced from their homes and personal papers.

Among other things, these guidelines make the following changes for victims of natural disasters who file for bankruptcy:

-Credit counseling will not be required.

-Debtors who cannot provide required documents due to a natural disaster will not face enforcement actions.

-Trustees are to consider the income loss, increased expenses, and other effects of a natural disaster as "special circumstances" that may allow a debtor who doesn't otherwise pass the means test to qualify for Chapter 7.

-Trustees will provide alternate means for debtors to attend creditors' meetings, if necessary.

[bkfiler]

Trustees are to consider the income loss, increased expenses, and other effects of a natural disaster as "special circumstances" that may allow a debtor who doesn't otherwise pass the means test to qualify for Chapter 7.

doesnt this mean people should be able to keep their checks used to pay for living expenses since it replaces income lost ?

[Minnymouth]

Hopefully,
This will help these folks keep what small income they now have, their insurance (if any) to rebuild, etc..... and help them get started with a "clean slate".......

Loosing everything you own and have in life in one "sweep" is bad enough, but to have a Trustee standing there wanting the food out of your mouth and the money out of your pockets, sends its all to a "new level" of dispair... I think these people have suffered enough.... Many lost their homes (now the govt. wants their land too - if they don't go back), autos, personal belongings, all their paperwork, pets. Some lost family members also..... Then starving for several days until someone was able to get food and water to them.....

Needless to say, many stayed when they "should have left"... thus bringing on a lot of grief to themselves....... But still, they need all the help that we, as compassionate people, can give them to get back on their feet.

Some will benefit greatly from this ordeal, and many will never get back to the place they were before.....

I'm sure it would be very hard for someone who is retired to "start over" again......... We can't imagine the impact that would have on our lives.....

I'm glad to see that at least part of our govt. sees the need to lighten the restrictions on bankruptcy to help these people.