Bankruptcy Reform
On May 14th 2004 the new Bankruptcy Legislation Amendment (anti-avoidance and other measures) Bill was introduced. The purpose of this bill was to curtail the unfair way in which some high income earners were using bankruptcy laws as a way of avoiding their tax payments. Even though the number of affluent people who try to use bankruptcy as an excuse is small, their share still amounts up to a significant sum. These people have the ability to pay their taxes but by filing for bankruptcy they are able to avoid their tax obligations.
Despite the good intensions with which this bill has been introduced, some people are worried that though this bill was initiated to curb tax avoidance by those who can afford it but it might also adversely influence other people who actually need the advantages of filing for bankruptcy to solve their serious financial problems.
The bill came into effect quickly after it was introduced in May 2004. On May 21st 2004 the Chairman of the House of Representatives Standing Committee on Legal and Constitutional Affairs, Bronwyn Bishop made it known to the media that the committee is examining changes to bankruptcy laws. On the 18th of June, 2004 the ICAA expressed its support for the legislation, however they also voiced their concern about the effect that this new law would have on the individuals who genuinely were in financial trouble and were not using bankruptcy as a technique of tax evasion. By the 7th of December 2005 the Bankruptcy Legislation Amendment (Anti-Avoidance) Bill 2005 was introduced into parliament.
The bill has been effective from October 17, 2005 and with this bill it would be more difficult for people to make a fresh start with their finances by filing for bankruptcy. Since the law has come into effect, filing for Chapter 7 bankruptcy will be considerably changed. Unlike earlier, a means test will be conducted in order to evaluate if you quality for Chapter 7 or not. In addition to that you will also have to attend, and pay for, debt counseling which is mandatory and will be considered as part of the criterion for determining your qualification. At the same time, if it so happens that you do not qualify for Chapter 7 bankruptcy, then you can still file for bankruptcy under Chapter 13, even though it is a much more complicated process.
* free bankruptcy evaluation by a lawyer
http://www.bankruptcyhome.com/bankruptcyreform.htm
Saturday, May 19, 2007
Bankruptcy and Jobs
Bankruptcy and Co-signers
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/bankruptcyandjobs.htm
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/bankruptcyandjobs.htm
Bankruptcy and Cosigners
Bankruptcy and Co-signers
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/cosigners.htm
Before filing for bankruptcy you need to make sure which type is appropriate for your situation. At this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. The answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
Essentially, only a Chapter 13 bankruptcy will protect your co-signer. With a Chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. That is to say, with Chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. On the other hand, Chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. Under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. All the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. The following aspects should stay constant while your file for bankruptcy and in the later processes also. If any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. The factors are:
* you file for Chapter 13 bankruptcy. Chapter 7 will not protect your co-signers
* the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
* the co-signer is not the recipient of any benefits from the debt proceeds.
* the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
When filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. It would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
http://www.bankruptcyhome.com/cosigners.htm
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