You may have heard a lot lately in the news about the new bankruptcy law...over the past several years, Congress has been urged by banking and credit card industries to pass legislation that would hinder consumers from filing bankruptcy under Chapter 7, a type of bankruptcy which allows individuals who qualify to eliminate or discharge all of their unsecured debt (except for certain categories of debts, such as taxes, child support and student loans).

On April 20, 2005 President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act, which took effect on October 17, 2005. There are a LOT of myths and rumors out there regarding this act, some claiming that Chapter 7 has been eliminated when in fact under the new law, we believe MORE people will be able to file for chapter 7 than before.

If its ok for large corporations to file bankruptcy, MCI, Enron, United Airlines…then don’t feel guilty. YOU have to do what’s best for you and your family……but make sure you know the facts!

"I have heard on the news that..."

they outlawed Chapter 7! - this is NOT TRUE!!
they are making everybody go Chapter 13" - NOT TRUE!!
you can not file on credit cards any more! - NOT TRUE!!
you can not file on medical bills any more! - NOT TRUE!!

Listen up people!!!…….Bankruptcy is still available to you and it is still the best way to get rid of your overwhelming Debt Problems, lawsuits, to stop foreclosure, etc. Don’t let anybody tell you otherwise…

 

A Closer Look at the New Law

Despite the rumors, THE NEW LAW DOES NOT ELIMINATE CHAPTER 7, nor does it prevent individuals from getting rid of credit card debt. The truth is you can do almost everything under the new law that you could under the old law. Over 90% of individuals can get the exact same relief under the new law as they could under the old law.

So what has changed under the new law?

The main difference is that there are additional paperwork requirements. You will need to document your income and expenses. In some cases, you will need to provide proof (such as pay records) of your income for the 6 months prior to filing. There is also a requirement that individuals filing bankruptcy undergo credit counseling both before and after they file. However, this can be done either over the phone or over the internet, so you will not have to leave you home to do it. If you do not have internet access, we can provide it for you at our offices..

Another change under the new law is that there is now a mathematical formula to determine whether one qualifies for Chapter 7 or would need to file under Chapter 13. This is called the “Means Test”. In order to qualify for Chapter 7 under the Means Test, one must either have gross annual income that is below the state median income level or have income above the state median income level but have enough allowable expenses so that the remaining “Disposable Income” is insufficient to pay creditors at least $6,000.00 over 5 years. Over 90% of the individuals we have interviewed qualify for Chapter 7 under the Means Test. Contract our office today for a free Means Test analysis.

Did You that Bankruptcy...

Is the only way to stop ALL interest on your credit cards

Is the only sure way to stop garnishments and lawsuits

Is the best way to stop a home foreclosure.

That if you are single (not married) you can make up to $41,929.00 per year (as of June 2008, (with regular increases) and not be presumed of abusing the Chapter 7 bankruptcy laws.

That you may still be able to file chapter 7 in some higher income cases if you have reasonable regular every day expenses and they exceed your monthly net income.

That a family of three in Michigan has to make more than $60,085.00 in order to be presumed to need to file chapter 13…

That you can include back taxes and back child support in a e-z payment plan under chapter 13.

That in most chapter 13's you only have to pay back a small percentage of your debt...much of it at zero percent interest.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

COME ON IN AND GET THE FACTS!!
Law Offices of Thomas B. Baynton
200 N. Division, Grand Rapids, MI 49503
Call Today (616) 456-6100 OR (616) 742-5518
Fax (616) 459-4909
tbaynton@sbcglobal.net

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