Recent Changes in Bankruptcy

Bankruptcy Law Changes

In 2005 President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act . Although the law contains many significant provisions, your ability to secure debt relief and protection from creditors remains largely the same.

Mandatory Credit Counseling

Individuals filing for bankruptcy under Chapter 7 are required to undergo credit card debt counseling within 6 months of filing a Chapter 7 bankruptcy petition. Bankruptcy petitions will be denied if they do not comply with this simple requirement. This is not an obstacle to obtaining debt relief.

Means Test

If your income is higher than the average income in California, you are subject to a test of your income and expenses using the Internal Revenue Service (IRS) guidelines. If it is determined that you can pay more than 25% of your debts over time, you may not be eligible to file for bankruptcy under Chapter 7. You may need to file for bankruptcy under Chapter 13.

The new law does not mean that you cannot file for protection. It does make it even more important to discuss your needs with an experienced bankruptcy lawyer. We can help guide you through the new bankruptcy process.

More Information

To learn more about your rights under federal bankruptcy law, Call us at (760) 599-4914 to arrange an initial consultation and find out what we can do for you. Contact us

No-cost 30 minute consultations

Chapter 7 Bankruptcy

We help homeowners, workers, and other clients file for Chapter 7 bankruptcy protection. Sometimes referred to as a "straight liquidation bankruptcy," Chapter 7 is the most common type of consumer bankruptcy due to its relative simplicity and cost. It has generally been the bankruptcy used by those with no assets or limited assets.

Bankruptcy is a powerful tool for managing debt. It gives people a fresh start. Some examples of dischargeable debts include:

Credit Card Debt
Medical Bills
Business Debt
Unsecured Loans

However, there are several types of debts that cannot be discharged by filing for Chapter 7. Child support, taxes, student loans, and certain types of court-ordered damages awards are not discharged in bankruptcy.

Recent Changes in Bankruptcy Law

The Bankruptcy Code was amended in 2005. The changes generated a great deal of discussion among bankruptcy professionals and concerned debtors. Although a means test is now applied to Chapter 7 filings, we find that most people who qualified for federal debt protection before still qualify today. The credit counseling requirement can be met in our office. Call us to learn more about the protections available to you. Contact us

To learn more about your rights under federal bankruptcy law, call for an appointment today.

Call us at 760-599-4914 to arrange an initial consultation and find out what we can do for you. No-cost 30 minute consultations

Chapter 13 Bankruptcy

Stop foreclosure. Stop creditor harassment. Contact us

Many people who are considering filing for bankruptcy make the mistake of believing there is only one type of bankruptcy filing. There are different types of bankruptcy filing, and which is best for you depends on your financial condition. We handle Chapter 13 repayment plans and help homeowners stop foreclosure.

If you need time to repay debt, we can help. Contact us

Chapter 13 bankruptcy is used most often to prevent mortgage foreclosures. If you are a homeowner and want to keep your house, but need to file bankruptcy, Chapter 13 is most likely what you will file. Filing a Chapter 13 bankruptcy permits you retain exempt assets and continue to make payments:

Pay past-due mortgage debts over time to prevent foreclosure
Keep valued assets such as your house, car, and boat
Pay other debts and loans over a 3-5 year period
Stop collection efforts
Prevent new debt collection actions from starting

This type of bankruptcy is commonly referred to as "wage earner" bankruptcy because it is intended for people who have a steady source of income, but need some help to bring their finances under control.

Recent changes in bankruptcy law have affected the way Chapter 13 filings are handled. Do not be put off by what you may have heard in the media about bankruptcy reform. You can still file and stop foreclosure. Our attorneys can explain how the changes will affect your filing.

To learn more about your rights under federal bankruptcy law, Call us at (760) 599-4914 to arrange an initial consultation and find out what we can do for you. No-cost 30 minute consultations Contact us

Frequently Asked Questions about Bankruptcy

Q: Why are so many consumers filing bankruptcy?

A: Americans generally have overextended themselves by using too much easily accessible credit to finance overspending, combined with lack of savings. With no financial safety net, sudden crises such as medical emergencies, job losses or failed businesses, death or disability of spouses, or divorce can result in insurmountable debt. On average, a typical bankruptcy debtor is employed and middle-aged with a high school education and relatively low income.

Q: What alternative courses of action are there to filing bankruptcy when facing overwhelming debt?

A: Short of bankruptcy, a debtor may enter into mediation with creditors or negotiate workout agreements to extend due dates, lower interest rates, partially forgive debt or alter other terms. A debtor may execute an assignment of property for the benefit of creditors (ABC), wherein the debtor puts assets in the trust of a neutral third party to pay creditors. A business debtor can sell the business, negotiating the satisfaction of debt as part of the deal. Other creative options to bankruptcy exist.

Bankruptcy. Just the sound of it evokes strong feelings in most people. It's rarely anyone's first choice when trying to cope with overwhelming debt. The decision to file bankruptcy can be the right one when made with full awareness of all its consequences.

Bankruptcy - An Overview

Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor's assets and liabilities and provides a structure within which the debtor is allowed to keep some property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud and most tax debt.

The traditional stigma of bankruptcy has faded and been replaced by the view that it is a fresh start after a time of trouble. Most bankruptcy debtors have experienced unexpected and extreme financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce or illness.

In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney to help you to assess your legal options.

Consumer Bankruptcy

When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding in a federal bankruptcy court that relieves the debtor of some or all of his or her debts. While bankruptcy may not be the best option for everyone, in the right situations, it can provide people with a fresh start. A lawyer experienced in bankruptcy law can advise you as to whether bankruptcy may be the right move for you.

Commercial Bankruptcy

Like a consumer, a business sometimes finds itself in the uncomfortable position of being unable to pay its debts. One solution is to file for bankruptcy, a legal process in federal bankruptcy court that releases the business from the obligation to pay all or some of its debts. A lawyer experienced in bankruptcy can advise business owners about whether bankruptcy is right for them.

Credit Counseling Requirement in Bankruptcy

In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a new bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing. A lawyer experienced in consumer credit and bankruptcy law can help educate debtors about these new counseling requirements.

Surviving the Emotional Effects of Bankruptcy

No matter what circumstances ultimately led to filing bankruptcy, both the practical and the emotional impact on the debtor will be enormous. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life. An experienced bankruptcy attorney can guide a debtor through the complicated legal, financial and emotional maze of bankruptcy and steer him or her in the right direction for the future. Contact us


640 Escondido Ave Ste 113, Vista, California 92084 Phone:760-599-4914 Fax: 760-599-4962 E-MAIL
	Recent Changes in Bankruptcy Bankruptcy Law Changes In 2005 President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act . Although the law contains many significant provisions, your ability to secure debt relief and protection from creditors remains largely the same. Mandatory Credit Counseling Individuals filing for bankruptcy under Chapter 7 are required to undergo credit card debt counseling within 6 months of filing a Chapter 7 bankruptcy petition. Bankruptcy petitions will be denied if they do not comply with this simple requirement. This is not an obstacle to obtaining debt relief. Means Test If your income is higher than the average income in California, you are subject to a test of your income and expenses using the Internal Revenue Service (IRS) guidelines. If it is determined that you can pay more than 25% of your debts over time, you may not be eligible to file for bankruptcy under Chapter 7. You may need to file for bankruptcy under Chapter 13. The new law does not mean that you cannot file for protection. It does make it even more important to discuss your needs with an experienced bankruptcy lawyer. We can help guide you through the new bankruptcy process. More Information To learn more about your rights under federal bankruptcy law, Call us at (760) 599-4914 to arrange an initial consultation and find out what we can do for you. Contact us No-cost 30 minute consultations Chapter 7 Bankruptcy We help homeowners, workers, and other clients file for Chapter 7 bankruptcy protection. Sometimes referred to as a "straight liquidation bankruptcy," Chapter 7 is the most common type of consumer bankruptcy due to its relative simplicity and cost. It has generally been the bankruptcy used by those with no assets or limited assets. Bankruptcy is a powerful tool for managing debt. It gives people a fresh start. Some examples of dischargeable debts include: Credit Card Debt Medical Bills Business Debt Unsecured Loans However, there are several types of debts that cannot be discharged by filing for Chapter 7. Child support, taxes, student loans, and certain types of court-ordered damages awards are not discharged in bankruptcy. Recent Changes in Bankruptcy Law The Bankruptcy Code was amended in 2005. The changes generated a great deal of discussion among bankruptcy professionals and concerned debtors. Although a means test is now applied to Chapter 7 filings, we find that most people who qualified for federal debt protection before still qualify today. The credit counseling requirement can be met in our office. Call us to learn more about the protections available to you. Contact us To learn more about your rights under federal bankruptcy law, call for an appointment today. Call us at 760-599-4914 to arrange an initial consultation and find out what we can do for you. No-cost 30 minute consultations Chapter 13 Bankruptcy Stop foreclosure. Stop creditor harassment. Contact us Many people who are considering filing for bankruptcy make the mistake of believing there is only one type of bankruptcy filing. There are different types of bankruptcy filing, and which is best for you depends on your financial condition. We handle Chapter 13 repayment plans and help homeowners stop foreclosure. If you need time to repay debt, we can help. Contact us Chapter 13 bankruptcy is used most often to prevent mortgage foreclosures. If you are a homeowner and want to keep your house, but need to file bankruptcy, Chapter 13 is most likely what you will file. Filing a Chapter 13 bankruptcy permits you retain exempt assets and continue to make payments: Pay past-due mortgage debts over time to prevent foreclosure Keep valued assets such as your house, car, and boat Pay other debts and loans over a 3-5 year period Stop collection efforts Prevent new debt collection actions from starting This type of bankruptcy is commonly referred to as "wage earner" bankruptcy because it is intended for people who have a steady source of income, but need some help to bring their finances under control. Recent changes in bankruptcy law have affected the way Chapter 13 filings are handled. Do not be put off by what you may have heard in the media about bankruptcy reform. You can still file and stop foreclosure. Our attorneys can explain how the changes will affect your filing. To learn more about your rights under federal bankruptcy law, Call us at (760) 599-4914 to arrange an initial consultation and find out what we can do for you. No-cost 30 minute consultations Contact us Frequently Asked Questions about Bankruptcy Q: Why are so many consumers filing bankruptcy? A: Americans generally have overextended themselves by using too much easily accessible credit to finance overspending, combined with lack of savings. With no financial safety net, sudden crises such as medical emergencies, job losses or failed businesses, death or disability of spouses, or divorce can result in insurmountable debt. On average, a typical bankruptcy debtor is employed and middle-aged with a high school education and relatively low income. Q: What alternative courses of action are there to filing bankruptcy when facing overwhelming debt? A: Short of bankruptcy, a debtor may enter into mediation with creditors or negotiate workout agreements to extend due dates, lower interest rates, partially forgive debt or alter other terms. A debtor may execute an assignment of property for the benefit of creditors (ABC), wherein the debtor puts assets in the trust of a neutral third party to pay creditors. A business debtor can sell the business, negotiating the satisfaction of debt as part of the deal. Other creative options to bankruptcy exist. Bankruptcy. Just the sound of it evokes strong feelings in most people. It's rarely anyone's first choice when trying to cope with overwhelming debt. The decision to file bankruptcy can be the right one when made with full awareness of all its consequences. Bankruptcy - An Overview Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor's assets and liabilities and provides a structure within which the debtor is allowed to keep some property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud and most tax debt. The traditional stigma of bankruptcy has faded and been replaced by the view that it is a fresh start after a time of trouble. Most bankruptcy debtors have experienced unexpected and extreme financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce or illness. In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney to help you to assess your legal options. Consumer Bankruptcy When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding in a federal bankruptcy court that relieves the debtor of some or all of his or her debts. While bankruptcy may not be the best option for everyone, in the right situations, it can provide people with a fresh start. A lawyer experienced in bankruptcy law can advise you as to whether bankruptcy may be the right move for you. Commercial Bankruptcy Like a consumer, a business sometimes finds itself in the uncomfortable position of being unable to pay its debts. One solution is to file for bankruptcy, a legal process in federal bankruptcy court that releases the business from the obligation to pay all or some of its debts. A lawyer experienced in bankruptcy can advise business owners about whether bankruptcy is right for them. Credit Counseling Requirement in Bankruptcy In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a new bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing. A lawyer experienced in consumer credit and bankruptcy law can help educate debtors about these new counseling requirements. Surviving the Emotional Effects of Bankruptcy No matter what circumstances ultimately led to filing bankruptcy, both the practical and the emotional impact on the debtor will be enormous. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life. An experienced bankruptcy attorney can guide a debtor through the complicated legal, financial and emotional maze of bankruptcy and steer him or her in the right direction for the future. Contact us