REFERENCE TO NEW LAW

If you are thinking of using bankruptcy as an avenue to reduce or eliminate the burden of a bad financial situation, think about talking to a bankruptcy attorney. The bankruptcy attorney will be able to reference this new law, which took effect on October 17, 2005. The new bankruptcy law is in effect, and the climate has drastically changed for people in financial debt. Prior to the new law, potential filers could walk away from their debts after giving up most of their assets – which in most cases were not substantial. So under the new bankruptcy law there will be a lot fewer Chapter 7 and a lot more Chapter 13 filings. Whether you filed for Bankruptcy Law Chapter 7 or any other chapter in the bankruptcy code, there will be a record of it on your credit report for 10 years and it may take several years before you can re-establish your credit. Before you can file for bankruptcy under either Chapter 7 or Chapter 13, you must complete credit counseling with an agency approved by the United States Trustee's office. However, you are required only to join in the counseling; you do not have to go with any repayment plans the agency recommends.