The new bankruptcy law will soon be in effect
The new bankruptcy laws will be in effect before the end of
the year. This is devastating news to those who are already
in debt or facing possible future debt. However this is good
news to most businesses no longer having the need to file
for as much profit loss as some had to in the past. Once the
new bankruptcy law goes into effect it will be almost
impossible for some individuals to file for bankruptcy.
Chapter 13 bankruptcy will be the most likely step anyone
can take to file at all.
How does Chapter 13 bankruptcy work? Well it is a plan that
arranges monthly payments of the debtor. The courts
calculate what amounts the individual can pay on a monthly
basis. Chapter 13 is available to anyone who has some kind
of steady income allowing them to come up with money to pay
off their debts. It does prevent the debtor from the need to
liquidate any of their available assets. The individual does
not decide what they can pay and when they can pay it off.
The courts will calculate the payment arrangements and the
time line in which the debts are to be paid off. Now that
there is a new bankruptcy law people should plan better for
the future to prevent their need to file as bankrupt.
One very important thing is to never live outside your own
means. If you have credit cards don’t use them as if you
will have the money every month to pay the minimum balance.
Be prepared for the unexpected such as a loss of your job or
loss of any other source of income. This is where some
people get into trouble. Protect yourself and your assets by
being insured. Some people get into debt due to unexpected
medical expenses or property damage.
There are things that happen that no one ever plans on that
can lend him or her in debt. However part of the cause for
the change in the bankruptcy law is due to those who have
abused the filing power of bankruptcy. Although there are
very many people who never abused the system they will have
to suffer the consequences. Most people may feel that the
decision is unfair, especially to those who did all they could from falling into
debt.
We can not turn back the hands of time and erase the
decisions that were made by our government. Regardless of
your situation we most pay the same price caused by those
who abused bankruptcy in the past. The best step we can take
is to be prepared for all financial circumstances. Make a
back up plan of your own and never have the need to even
consider bankruptcy.
Kevin Heaps is the webmaster and owner of
Aol Bankruptcy which is an excellent place
to find bankruptcy links, resources
and articles. For more information go to:
aolbankruptcy.com
