Augusta GA Bankruptcy Lawyer

Augusta GA Bankruptcy Lawyer

Bankruptcy Law Amendments in 2006

In the ten year period, between 1994 and 2004, bankruptcy filing in the US nearly grew twice as much. The administration’s reaction was to take a closer look at reasons individuals and businesses were filing for bankruptcy. New laws were instated to make sure that individuals and businesses had valid reasons for filing for bankruptcy.

One of the primary statute regarding bankruptcy that was instated in the United States during 2004 was the Bankruptcy Abuse Prevention and Consumer Protection Act. This statute went into effect in October 2005. This statute created quite a stir in the financial and bankruptcy law practice. Besides making it more difficult to qualify for Chapter 7 bankruptcy, or complete bankruptcy, this statute brought about stricter rules and budgets on Chapter 13 debtors.
One big requirment the law is the necessity for filers to have filed tax returns for four years in a row prior to being eligible for protection. Dischargeable debts, or those debts where personal liability is taken away by the court system, is more difficult to come by. The Act mandates that filers prove good reason for dischargeable debt and mandates more debtors to take responsibility with non-dischargeable debt budgets.

Chapter 13 bankruptcy permits the debtor to keep certain assets upon proving only limited debt and a steady income. Chapter 13 bankruptcy is best suited for those debtors who are a major financial difficulty but still have means of paying for certain assets. The court will determine a repayment schedule and budget that allows for full repayment of mortgages or auto loans in three to five years.

Where repayment is simply not an option, the bankruptcy law requires that a debtor file under Chapter 7 bankruptcy. This is often called as complete liquidation of assets, except for exempt items. Exempt items in a bankruptcy hearing are decided by the court and are usually items that are a necessity. The courts will classify debts into two categories: non-dischargeable and dischargeable debt.
---------------------
We are Augusta GA bankruptcy lawyer | Georgia attorney that assist their clients in filing for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Augusta GA.