Bankruptcy in Athens-Clarke County, Georgia

Bankruptcy law is a federal statutory law contained in Title 11 of the United States Code. The United States Constitution, in Section 8, gives Congress the power to create uniform rules on the subject of bankruptcies throughout the US. States do not regulate bankruptcy but they may pass laws that affect other areas of the debtor-creditor relationship. So it is important to know the federal rules that apply to bankruptcy as well as any state laws that are applicable.
In April 2005 some big changes to bankruptcy laws were made by the Bankruptcy Abuse Prevention and Consumer Protection Act, affecting all bankruptcies filed after October 2005. The assets in Individual Retirement Accounts are exempt assets and cannot be sold to pay creditors. To restrict the availability of a Chapter 7 discharge of debt, the guidelines have been significantly revised. A Means test now governs if you are eligible for filing Chapter 7. Debtors should take part in approved credit counseling prior to filing for bankruptcy. Filing fees were increased and as a result attorney fees have also increased.
There is a great amount of misinformation out there for debtors contemplating bankruptcy. If you are considering about filing bankruptcy, there is no reason to worry by the means test. If you are well below the state median income, this change will not affect you. Even debtors who are above the state median income often can qualify for chapter 7 as the expenses are way too high to be eligible. However, if you have an income near your state's median, you must contact a seasoned bankruptcy in Athens-Clarke County, Georgia.

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