Bankruptcy in Athens, Georgia

Title 11 of the United States Code contains the federal bankruptcy law. The US Constitution, in Section 8, grants Congress the power to create uniform laws on the subject of bankruptcies all over the US. States don’t regulate bankruptcy but they can pass statutes that influence other aspects of the debtor-creditor relationship. Therefore it is important to understand the federal rules that are applicable to bankruptcy as well as any state laws that are applicable.
Since April 2005 some major changes to bankruptcy rules 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 rules have been significantly revised. A Means test now determines eligibility for filing Chapter 7. Debtors must participate in approved credit counseling prior to filing for bankruptcy. Filing fees have been increased and subsequently attorney fees have also gone up.
There is a lot of misinformation available there for persons contemplating bankruptcy. If you are thinking about filing bankruptcy, there is no reason to be alarmed by this 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 generally can qualify for chapter 7 because the expenses are way too high to be eligible. However, if you have an income near your state's median, you must consult a seasoned bankruptcy in Athens, Georgia.

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