Personal Bankruptcy:

"Debtor" means you, the individual consumer.
"Creditor" means the bank, credit card company, lender or other party that wants you to pay them money.

As of October 17, 2005, the rules applicable to the filing of personal bankruptcy were significantly revised. While this outline will give you a very broad overview, your case is unique. Seemingly small facts may affect the outcome of your case. There is no fee for an initial consultation with me, so I encourage you to contact my office for an appointment.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 imposes a "means test." Under the "means test" federal IRS living standards and state living standards are combined with your actual expenses in order for the court to evaluate your eligibility as a Chapter 7 or Chapter 13 debtor. In addition, both Chapter 7 and Chapter 13 debtors have significantly increased filing and reporting obligations.

Additionally under the new law, you are required to receive pre-bankruptcy credit counseling as a condition of filing bankruptcy and you must attend a mandatory personal financial management instructional course. Both of these classes are available by telephone or internet. You will pay my office for the classes and we will give you an access code to enroll in the authorized classes.

For both Chapter 7 and Chapter 13 debtors, a copy of the debtor's most recent taxes must be provided to the Trustee and any creditor that requests a copy.

Debts for in excess of $500.00 for nonessential goods and services incurred within 90 days of the filing of a Chapter 7 or Chapter 13 proceeding are non-dischargeable. Further, cash advances of over $750.00 received within 70 days of a filing for bankruptcy are presumed non-dischargeable.