The new bankruptcy laws went into effect on October 17, 2005. These laws do not prevent a debtor from filing bankruptcy, though the new bankruptcy laws contain some differences.
The main procedural difference is in the information that a debtor must provide to the bankruptcy court in order to open a bankruptcy case and to obtain a discharge.
Other differences include:
- how long an individual must wait to obtain a discharge if the debtor had a prior bankruptcy;
- the income level required in order to obtain a discharge in a chapter 7 case;
- how long the Automatic Stay lasts; or
- the procedure for reaffirming a debt on an automobile or a credit card.
It is highly recommended that an individual or business owner consult with a bankruptcy attorney to learn how the changes in bankruptcy laws may impact the particular financial situation.
FAQ Type:
Before Filing Bankruptcy