New Bankruptcy Laws from October 2005
Yes the bankruptcy laws changed in October 2005. A chapter 7 bankruptcy is still a way to discharge unsecured debts, meaning credit cards medical bill, cars that have been reposed, Broken apartment leases, And many other similar type debts. You will not lose your home or car by filing the bankruptcy. Yes you do need to continue to make the payments on the car or house to keep them. The amount of equity you have in your home has changed to the first two and a half years not having more than 125,000 equity. So for most of us this not an issue.
The law Requires You to take two classes , one before you file and one after. These class are offered on the internet and last about 90 minutes.
It seems the hardest thing for people to do is having the last 6 months of pay stubs and bank statements.
Once the case has been file it takes about four months to receive the discharge which is just a little longer than before. The chapter 7 will still fall of your credit in 10 years.
