Bankruptcy in Augusta, GA

Bankruptcy in Augusta, GA

Bankruptcy law is a federal statutory law contained in Title 11 of the United States Code. The United States Constitution, in Section 8, grants Congress the power to create uniform laws on the subject of bankruptcies all over the United States. States do not regulate bankruptcy but they may pass laws that affect other areas 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 may apply.
In April 2005 some big 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 protected and are exempt from liquidation to pay creditors. To restrict the availability of a Chapter 7 discharge of debt, the rules have been significantly changed. A Means test now governs eligibility for filing Chapter 7. Debtors must take part in approved credit counseling prior to filing for bankruptcy. Filing fees were increased and as a result attorney fees have also gone up.
There is a great amount of misinformation out there for debtors considering bankruptcy. If you are thinking about filing bankruptcy, there is no reason to panic by this test. If you are well below the state median income, you will be unaffected. Even debtors who are above the state median income often can qualify for chapter 7 because the expenses are way too high to qualify. But, if you have an income near your state's median, you might want to contact a seasoned bankruptcy in Augusta, GA.

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