Are you eligible for Chapter 7 Bankruptcy Protection?

In late 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was enacted into law. Among other things, this act requires a “means test” to see if debtors qualify for Chapter 7 bankruptcy relief. The means test examines your monthly income and expenses and compares them to the median income in and around your area. Typically, if you make less than the median income for a family of your size, you are allowed to file Chapter 7. If your income exceeds the median income, you may not be allowed to file Chapter 7, but may be allowed to …

Read more …

Requirements for debt relief agencies

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires: (a) A debt relief agency shall… (1) not later than 5 business days after the first date on which such agency provides any bankruptcy assistance services to an assisted person, but prior to such assisted person’s petition under this title being filed, execute a written contract with such assisted person that explains clearly and conspicuously– (A) the services such agency will provide to such assisted person; and (B) the fees or charges for such services, and the terms of payment; (2) provide the assisted person with a copy of …

Read more …