You Can Still Qualify for Chapter 7
In 2005, the US Congress enacted a bankruptcy reform bill, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Despite changes that appeared to favor creditors, it is still possible for most individuals to file Chapter 7 bankruptcy and discharge some or all of their debts.
Attorneys Who Provide Personalized Service
At the Miami law firm, Ferrer Shane, PL, our attorneys counsel people thinking about filing bankruptcy. We make sure they understand the process, discuss the differences between Chapter 7 and Chapter 13 bankruptcy, and describe the options available to them. If we believe that bankruptcy is not the right choice, we will tell them. Our lawyers are known as straightforward and honest attorneys who provide the personal attention people need when facing difficult financial situations.
Some Changes in the Bankruptcy Process
- Means test. Before bankruptcy reform, almost anyone could use Chapter 7 to file bankruptcy. The BAPCPA now requires a potential Chapter 7 filer to pass a means test. If the means test shows that the person does not meet the criteria for Chapter 7, he or she will need to file Chapter 13 bankruptcy, which is a debt repayment program.
- Filing again. Because of BAPCPA, people must now wait longer if they wish to file bankruptcy a second time. Before bankruptcy reform, the law required a debtor to wait six years before filing Chapter 7 again. After bankruptcy reform, debtors must wait eight years before another Chapter 7 filing.
- Financial education. The new law requires that people filing either Chapter 7 or Chapter 13 bankruptcy complete credit counseling and take a financial management program.
- More discharge exceptions. The revised law increased the number of student loans that cannot be discharged in a Chapter 7 filing and changed the details of other exemptions.
Changes such as these and many others have given rise to the myth that it is now impossible to qualify for bankruptcy. Before you decide that you cannot file bankruptcy, even though you are overwhelmed by debt, talk with a lawyer about your options.
Learn About Bankruptcy Reform
Contact a South Florida lawyer to find out about bankruptcy reform and its effect on your ability to file bankruptcy. Call Ferrer Shane, PL, at 305-262-2728.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
