|
Author: Charles Essmeier Article source: http://www.consolidatemybill.com/. Used with author's permission.
Congress recently passed sweeping legislation that will significantly reform American bankruptcy law. Designed to eliminate the "convenience bankruptcy" of compulsive gamblers and the financially irresponsible, this legislation will make it more difficult for those seeking bankruptcy protection from the courts to have their debts relieved.
Under current law, people who have debts that they cannot repay may file under Chapter 7 of the Federal bankruptcy code, which allows nearly all debts to be wiped away. The new legislation, which takes effect in October, 2005, will require most people filing for bankruptcy to file under Chapter 13 instead. Chapter 13 requires that a repayment plan be established, usually over a period of five years. Chapter 7 filings will still be an option, but the new legislation includes a "means test" that examines the filer's income to determine whether Chapter 7 or Chapter 13 is appropriate.
With the new law set to take effect, the number of people inquiring about Chapter 7 bankruptcy filing has increased dramatically. Attorneys who specialize in bankruptcy law have reported that their phones are ringing constantly, as people who are in financial trouble are wondering if they should file for bankruptcy immediately. While this is good for business, many attorneys are a bit concerned about the sudden rush to file for bankruptcy.
While filing for bankruptcy may be the only option for some people, it is not something to undertake in haste. Bankruptcy stays on your credit report for a minimum of ten years, and can your ability to obtain auto loans, mortgages or even jobs in the future, even if you have established financial stability. Bankruptcy should not be entered into lightly, and should be considered only as a last resort. Many creditors will work with those who owe them money, and it may be possible to establish a repayment plan without filing for bankruptcy.
If you feel that your financial situation is serious enough that bankruptcy is a possible option for you, you may wish to speak to a credit counselor or bankruptcy attorney now. There are still five months remaining before the new legislation takes effect; this should provide most people with ample time to examine their options carefully. What you should not do is rush into filing a bankruptcy petition that may turn out not to be necessary. A rush to beat a five-month deadline may haunt you for ten years or more, and that is the last thing you want. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.net, a site devoted to information regarding home equity loans.
Exceptional Leadership Inspires the Best Effort in Others
The essence of exceptional leadership is the ability to inspire the best effort in others. When people choose to give their best effort, satisfaction increases...
Image is EVERYTHING
The absolute foundation of your small business is your image. The way potential clients and/or customers perceive your business sets the stage for the way your ...
Cheap Health Insurance Rates and Personal Health Insurance
If you've been out of school for a couple of years or perhaps just graduated from college, you're probably a candidate for cheap health insurance. Once a person...
Risk-taking - Get Your Feet Wet!
We often use the phrase, "Get Your Feet Wet" when we are just beginning to learn how to do something or are about to pioneer a new initiative. When we particip...
Change Your Thinking, Change Your Life
The key to having what you want is letting go of what you think you need.
End Time Clock Ticking Away?
Earlier this month, I heard President George W. Bush and Mahmoud Abbas, the Prime Minister of the Palestinians speaking of another Peace Treaty with Israel.
Paper Industry
The paper industry in the US is hurting. Due to supply and demand prices are way up. If you look at the changes, due to the growth in housing and price of wood ...
Want To Be A Stronger Marketer? Work Your Marketing Muscles!
You want to be more flexible? You have to stretch your muscles. Want to be physically stronger? You have to find a way to workout and build your muscles. Want t...
The Advantages of Steel Buildings
Use of steel as a construction material has seen phenomenal growth in the last few years. Although steel buildings have been used in the commercial and industri...
You Can Master Article Marketing In 7 Days or Less
Writing The First Article - Fast Track to Article Marketing Success
Marketing Your Web Site Effectively
Provides information on how to market your Web site and improve your search engine results and online sales.
Why Do I (You) Collect?
Collecting is totally emotional for me the value is not important, it helps me to eternalize my memories of loved one's and good times and that my friend is pri...
Escape to Sunny Mexico - at Home!
Can't get away for a southern vacation this year? Don't despair -- plan a sunny Mexican style refresher for your patio décor and enjoy the festive atmosphere of...
Benfotiamine - A New Tool In Preventing Diabetic Complications?
Benfotiamine made headlines globally in 2003 when researchers released information about a study that was conducted at The Einstein College of Medicine in New Y...
Why Corporations Need to Worry About Phishing
Phishing is much more than a problem faced by individual consumers, it is also a business problem faced by any organization that has employees or does business ...
Do You Want To Look Ten Years Younger?
12 beauty tips on how to look 10 years younger.
Learn How to Choose a Great Topic for Your Newsletter
The topic you choose for your newsletter is very important. Learn step by step how to find a profitable topic that you're passionate about.
Give Your Child the Gift of Self-Esteem
Much has been said about the "gifted child" but in truth every child is born with unlimited potential. As expressed so well by Orison Marden: "Deep within man ...
Happiness Is Truly M.A.G.I.C.A.L. (TM)
Many individuals seek the magical pill for happiness. Yet, happiness is truly magical provided individuals understand their own capacities. If happiness is stil...
Fair Credit Reporting Act: What You Should Know About It?
The Federal Fair Credit Reporting Act (FCRA) is designated to promote accuracy, fairness, and privacy of information in the files of every "consumer reporting a...
The Speed of the Day
Think about the first 30 minutes of your day. Do you hit the ground running, gulping down coffee and racing around like your hair is on fire? If so, you've pr...
Website Promotion – The Power of Writing Articles
Writing articles is the best-kept secret in the world of Website promotion. It is easy, yields fast results, and generates thousands of links to your website.....
Weight Loss by Treadmill
Weight loss using a good Treadmill workout program has worked for many people - and it can work for you too. Treadmills can be used by virtually any age group,...
Visit Western Australia and Stay in Fremantle - Holiday & Short Term Accommodation
Holiday and short-term executive style accommodation in the Fremantle area available for rent, at affordable prices. These beautiful properties offer the comfor...
|
Print this page