GRAND RAPIDS BANKRUPTCY ATTORNEY – BANKRUPTCY REFORM ACT
When you are facing financial problems and have questions about your bankruptcy options and exemptions in the Grand Rapids area, it is important to have the representation of a good bankruptcy attorney. Krupp Law Offices P.C. has been providing quality bankruptcy representation for over 85 years. If you are facing financial problems or have questions about bankruptcy and federal exemptions compared with Michigan exemptions, call the bankruptcy attorneys at Krupp Law Offices P.C. for a free phone consultation. During your phone consultation, our attorneys will provide you with immediate answers to your questions and schedule an appointment with one of our bankruptcy attorneys.
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2005 BANKRUPTCY REFORM ACT In 2005, The United States Congress passed the Bankruptcy Reform and Prevention Act. The bankruptcy law changes, in great part, were written by the credit card companies. The purpose of the changes is to make it more difficult for a person to file bankruptcy. However, contrary to the media description of the changes, only about fourteen percent (14 %) of the cases should see any major change in filing requirements.
PRE-BANKRUPTCY COUNSELING. One of the biggest changes in the 2005 reform is the requirement of a pre-filing bankruptcy briefing. This requires a consultation with a credit counseling agency by phone or internet prior to filing for bankruptcy (no more than 180 days prior to filing). This consultation can be done over the phone or on a computer with Internet access. The cost for this consultation can be as low as 5.00 dollars. Also, prior to receiving a discharge, a person must complete a personal financial management course online or over the phone. This can also be done by Internet access or by phone.
MEANS TESTING. The Bankruptcy Reform Act of 2005 introduced means testing. The purpose of this change was to force high income individuals into chapter 13 bankruptcy rather than filing for chapter 7 bankruptcy. A chapter 7 bankruptcy eliminates your unsecured debt (with some exceptions). Debts such as credit cards and medical bills are discharged and do not receive any repayment. There are exceptions to this discharge. These are debts such as taxes, student loans, child support, and other specific unique debt. To qualify for a chapter 7 discharge, your income must be either below the median income for the county you reside or below the median income after deductions for certain expenses. For example, for 2007, the median income for some counties in West Michigan are as follows:1 person - $48,626.00, 2 people - $59,541.00, 3 people - $70,579,.00 4 people - $87,070.00.* (January 1 2018) If your income is below the median income you qualify for chapter 7 bankruptcy.*
In the event that you income exceeds this limits, it does not necessary mean that you do not qualify for a chapter 7. If you exceed the median income for your county, then you receive certain deductions from your gross income for necessary expenses such as housing, food, clothing, and other deductions. These deductions are based on the number of persons in the household. For example, if you do not qualify for chapter 7 bankruptcy, than you may qualify for chapter 13 bankruptcy relief. Unlike a chapter 7 bankruptcy, in a chapter 13 bankruptcy, you pay back your creditors based on your ability to pay (not how much you owe) over a 36 to 60 month plan. It is important to realized that the creditor may only receive a small amount of the total debt owed to them or they may receive the full amount depending on the persons ability to pay (not how much is owed in total debt). A chapter 13 bankruptcy is for someone who cannot qualify for a chapter 7, but is unable to pay their debt on their own. This article is meant to be used a brief explanation of bankruptcy and the changes in the bankruptcy laws. For specific information related to your facts and circumstances, you should consult with an attorney from our office. We provide a free phone consultation
If you are facing financial problems, a good bankruptcy attorney is not optional, it is a requirement! Our bankruptcy attorneys can answer your questions with straight talk. Having the right bankruptcy attorney on your side can relieve your stress during difficult financial times. Our bankruptcy attorneys have over 85 years of bankruptcy experience. We can provide you with excellent bankruptcy representation.
Krupp Law Offices P.C. is located in downtown Grand Rapids, Michigan and has the right bankruptcy attorney for you. We represent clients in all bankruptcy matters throughout West Michigan, including the cities of Grand Rapids, Holland, and Grand Haven, and the counties of Kent, Ottawa, Allegan, Barry, Newaygo, Montcalm, Muskegon, and Ionia.
Call for a free phone consultation. Our office can help.
161 Ottawa NW Suite 404
Grand Rapids MI 49503