New bankruptcy laws took effect across the country, including here in Arizona, on October 17, 2005. Although a lot of hoopla was made about what these changes would mean, the effect was actually somewhat marginal. In the end, filing for Chapter 7 or Chapter 13 bankruptcy is still an option for most people. The main difference now is that there are a few more requirements during the process of filing for bankruptcy.
First, under the new bankruptcy laws, you are now required to complete two consumer credit counseling sessions before you can file for bankruptcy. Overall, these classes in credit counseling and debtor education provide valuable information as to whether bankruptcy is your best option or whether an informal payment plan may suit your needs better. Typically, these courses can be performed over the phone or via the internet. If you do decide to file for bankruptcy, then you must first obtain a certificate of completion from these courses. At Meyer Law, we can give you direction in completing this first step.
In addition, under the new bankruptcy laws, there is now a greater focus on the median income in your area and your family size to determine if you qualify for bankruptcy. Specifically, if your monthly income is below that of the Arizona median income for a family of your size, then you will qualify for Chapter 7 bankruptcy. If your monthly income is higher than the Arizona median, then we can help you conduct a means test to determine if you qualify for Chapter 7 bankruptcy or if Chapter 13 may be a better option for you.
Finally, the new bankruptcy laws stipulate that you may only file for Chapter 7 bankruptcy once within an eight-year period. Therefore, to file for Chapter 7 bankruptcy now, you may not have already filed in the last eight years.
At Meyer Law, we are well-versed in all the new bankruptcy laws and how they will directly affect you and your financial situation. Please contact us to discuss whether it is possible or suitable for you to file for bankruptcy at this time. |
