Brooklyn, NY Bankruptcy Attorneys Explain Bankruptcy Law Changes
Bankruptcy Law Changes, Brooklyn, NY Bankruptcy Attorneys
In 2005 President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act . Although the law contains many significant provisions, your ability to secure debt relief and protection from creditors remains largely the same. Our Brooklyn, NY bankruptcy attorneys can help you understand the changes and determine which chapter is appropriate in your individual situation.
Mandatory Credit Counseling
Individuals filing a petition under Chapter 7 are required to undergo credit card debt counseling within 6 months of filing a Chapter 7 petition. Petitions will be denied if they do not comply with this simple requirement. This is not an obstacle to obtaining debt relief. The credit counseling requirement can be fulfilled in any of our law offices.
New York Means Test
If your income is higher than the average income in New York, you are subject to a test of your income and expenses using the Internal Revenue Service (IRS) guidelines. If it is determined that you can pay more than 25% of your debts over time, you may not be eligible to file for bankruptcy under Chapter 7. Instead, you may need to file under Chapter 13.
The new law does not mean that you cannot file for protection. It does make it even more important to discuss your needs with our experienced Brooklyn, NY bankruptcy attorneys. At Rosenberg, Musso & Weiner, L.L.P., we have over 60 years of combined bankruptcy experience and can help guide you through the process.