Guest jeeptravel Posted April 14, 2005 Report Share Posted April 14, 2005 http://news.yahoo.com/news?tmpl=story&u=/ap/20050414/ap_on_go_co/bankruptcy_15 Link to comment Share on other sites More sharing options...
LadynRed Posted April 14, 2005 Report Share Posted April 14, 2005 Yep.. this is gonna be BAD, BAD, BAD.There's going to be a shitstorm in this forum REAL soon.. and in BK lawyers offices. Then, after this mess goes into effect later this year, I want to start tracking peoples stories, I want to see how really badly this is going to hurt people. I'm serioulsy considering a website JUST for this purpose - I think the wreckage is going to be pretty bad. Link to comment Share on other sites More sharing options...
Radio_Guy Posted April 14, 2005 Report Share Posted April 14, 2005 You know Lady in Red you may be right about this hurting us average people. However I still haven't seen what the dollar limit is that they keep talking about.I can tell you this, I have been personally hurt by corporate executives, (really they were raiders,) fleecing the company I worked for, sinking it and then declaring bankruptcy after moving to Florida where their MULTI-million dollar mansions were excluded from the bankruptcy because it was their private residence. There were numerous civil lawsuits from investors and employees .All of us in the Employee Stock Ownership Plan got nothing, (as did the investors,) and no severance pay, ( for my 7+ years of service.) Oh yeah, and we were working there and were rather profitable before they (the new management) ever showed up. (Sour Grapes you say, well YEAH ! )So I am praying that this legislation is really designed to get those type of dirtbags.... (However, I fear it won't.. since they probably wrote this legislation in the back room anyways...)Good luck and G*d help us....____________________________________________________Resistance is futile... You will be assimilated... Resistance is futile... You- Link to comment Share on other sites More sharing options...
LadynRed Posted April 14, 2005 Report Share Posted April 14, 2005 However I still haven't seen what the dollar limit is that they keep talking about. I'm not sure what it is you're hearing, can you clarify ?? There is SO much WRONG with this legislation, I think its going to cut a wide swath of devastation behind it. It's going to serioulsy stifle entrepreneurship and small business and they're insistence that it will HELP single parents fighting for child suport is bull, its going to be a disaster for those families.So I am praying that this legislation is really designed to get those type of dirtbags..Unfortunately, it does NOTHING to curb this abuse by big corporations.. why would the REPUBLICANS do ANYTHING to thump on their big business buddies ??? They've been bought off, wholesale, and WE are going to be the slaves. One article refers to a 'peonage' society being fostered by this bill.. that means debtors working for their creditors to pay off their debts and that is EXACTLY what this bill does ! Link to comment Share on other sites More sharing options...
ghacorp Posted April 14, 2005 Report Share Posted April 14, 2005 OMG, MBNA will be holding a BK bill celebration rally in the streets of Wilmington on Friday! I suppose Bush will be the master of ceremony! Link to comment Share on other sites More sharing options...
LadynRed Posted April 14, 2005 Report Share Posted April 14, 2005 Are you serious ?? This I would believe !!! Link to comment Share on other sites More sharing options...
Radio_Guy Posted April 14, 2005 Report Share Posted April 14, 2005 Hey Lady in Red,However I still haven't seen what the dollar limit is that they keep talking about.I'm not sure what it is you're hearing, can you clarify ??What I am referring to is this sentence that I have seen in all the news stories... The measure would require people with incomes above a certain level to pay credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan. I was led to believe by various people that this legislation was aimed at the same people who pay the Alternative Minimum Tax (people with high annual earnings - the Bernie Ebbers/Kenneth Lay dirtbags that steal billions of dollars and your Mom's pension...)However, I haven't seen a reputable news organization quote any numbers yet...____________________________________________________Resistance is futile... You will be assimilated... Resistance is futile... You- Link to comment Share on other sites More sharing options...
LadynRed Posted April 14, 2005 Report Share Posted April 14, 2005 The measure would require people with incomes above a certain level to pay credit-card charges, medical bills and other obligations under a court-ordered bankruptcy plan.Ok, what that is referring to is this onerous 'means test' that is in this legislation. If your income is above the median income (determined by the IRS and Census bureaus), you will be subject to the means test.Here's the best explanation - its a mess and its going to take the courts time to actually figure it out. http://abiworld.net/bankbill/On the right side, go down to the Means Test section - read it and weep ! Link to comment Share on other sites More sharing options...
Radio_Guy Posted April 15, 2005 Report Share Posted April 15, 2005 Oh No I was afraid of this... At least in my local area (Metro Wash. DC,) the mean income level listed is bare subsistance. You can't even qualify to buy a home at this income level.This won't affect me - However you are right this is not good... Radio_Guy____________________________________________________Resistance is futile... You will be assimilated... Resistance is futile... You- Link to comment Share on other sites More sharing options...
Poorgirl Posted April 15, 2005 Report Share Posted April 15, 2005 This new law is freaking insane Thank god! my mother filed back in the eighties. However, for people who might end up in her situation of today good luck why do some of the public believe that all people who files for BK is deadbeats? Look, I understand that their is people who do take advantage of the system but these people or professional hustlers and shouldn't be used as poster children for all BK filers. Their will be huge backlash soon over this new law..... Link to comment Share on other sites More sharing options...
Guest jeeptravel Posted April 15, 2005 Report Share Posted April 15, 2005 Sometimes your icome doesn't indicate how much money you have to eat or take care of life's basic necessities. To prevent these "above median" earners from filing BK may produce a dire situation of virtual slavery for folks who get in over their heads.I think Bush is wrong to sign this. I'm for reform, but not this way Link to comment Share on other sites More sharing options...
admin Posted April 15, 2005 Report Share Posted April 15, 2005 These are all the major changes.Means Test:This will identify debtors who have the financial capacity to pay some money to their creditors. The test will work as follows:TEST # 1:Is the family earning above the average income for their state?· 1997 US average for a family of one = $18,762;· 1997 US average for a family of two = $39,343;· 1997 US average for a family of three = $47,115;· 1997 US average for a family of four = $53,165.If the answer is "No" Chapter 7 can be filed!TEST # 2:If the answer is "Yes" to TEST # 1 , do you have excess monthly income of more than $166.66/month to pay $10,000 of debt over 5 years?If the answer is "No" you must answer another question, if "Yes" Chapter 7 cannot be filed but Chapter 13 may be filed!TEST # 3:If the answer is "No" to TEST # 2 do you have excess income of greater than $100/month to pay over the next 60 months at least 25% of your unsecured debt?If the answer is "No" you can file Chapter 7, if "Yes" chapter 7 cannot be filed but Chapter 13 may be filed!Proof of Income:Debtors filing Chapter 7 or Chapter 13 bankruptcy, must provide to the trustee, at least seven days prior to the 341 meeting, a copy of a tax return or transcript of a tax return, for the period for which the return was most recently due.State Exemptions:You cannot use the exemptions in your state of residence unless you have lived there at least 2 years.Homesteads:The exemption is limited to $125,000 if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period)Vehicles:If there is security (put in place within 3 years (Senate Bill) or 5 years (House Bill)) over your vehicle, you must pay the full amount owed or lose the vehicle.Current bankruptcy laws allow you to get the loan stripped down to the value of the vehicle and you make payments at that rate.Counseling:You must have finished counseling within the last 6 months before you can file.Child Support and Alimony:These debts would go from a priority of 7th to 1st.Tithing:Up to 15% of your income can be given to charity. This is seen by some as a loophole allowing people who may be just over the thresh hold of having to file Chapter 13 to drop down low enough to file Chapter 7. Link to comment Share on other sites More sharing options...
LadynRed Posted April 15, 2005 Report Share Posted April 15, 2005 Child Support and Alimony:These debts would go from a priority of 7th to 1st. They make this sound like a landmark thing !! Child Support and Alimony has NEVER been dischargable. Now, however, because of more debt surviving BK, the families that rely on child support will have to FIGHT the credit card companies for that support money. The CCC's have all the resources to wring money out of the non-custodial parents, the families do not.. and its the famiilies that are going to lose out. This did NOTHING to help these kids and families ! Link to comment Share on other sites More sharing options...
Christina Athens Posted May 3, 2005 Report Share Posted May 3, 2005 In regard to the new bankruptcy law, I have read that some who have written that the laws won't really change and there is a lot of unneeded hype surrounding it. Will this new bill make it more difficult to file chapter 7 or not? Link to comment Share on other sites More sharing options...
Guest jeeptravel Posted May 3, 2005 Report Share Posted May 3, 2005 This isn't hype.Meet with a lawyer to determine the answer to that. There are ceiling incomes now where if you make above a certain amount, you will have to pay back all or some to the Credit companies. More like a CH13. If you have no income of course, it will be the same as it always was.Like I said, all this is so new, I would consult an attorney to b sure. Link to comment Share on other sites More sharing options...
LadynRed Posted May 3, 2005 Report Share Posted May 3, 2005 Definitely NOT HYPE !! Will this new bill make it more difficult to file chapter 7 or not? ABSOLUTELY !! For some people it will be absolutely impossible and for EVERYONE it IS going to be more expensive. The lawyers are going to be rasing their rates, some say as much as double, because the new law will make your LAWYER responsible for errors in YOUR filing. Some lawyers will just stop doing Ch 7's entirely.If you cannot qualify, via the means test, for a Ch 7, you will be forced into a VERY restrictive 5 YEAR Chapter 13 if you want any bankruptcy protection at all. And its hardly going to be 'protection' any more either. More debt will survive bankruptcy than before. Creditors have new rights to challenge your filing or get your BK stopped completely. If you are forced into a CH 13, your ACTUAL expenses no longer mean squat, you will be allowed ONLY what the IRS says are 'allowable' expenses for tax evaders. Things like Cable TV are NOT on the allowed list, neither are cell phones.Its going to be nasty, very nasty. There's lots to read on how bad this bill is, start following some links posted here. Link to comment Share on other sites More sharing options...
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