New BK laws aren't that bad!!!

Discussion in 'Credit Talk' started by TomL, Mar 17, 2001.

  1. TomL

    TomL Guest


    1. They can't mean test ya if you ain't got a job. So if you do have a catastrophic illness or something and have low income, you can still file chapter 7.

    2. You can still file chapter 7 if you fall below median income. (It's something like $45,000 for a family of 4 around here).

    3. This will definately cut down on filers who file even though they had enough $$$ to avoid BK. That's a GOOD thing. It will help change perception that all BK's are deadbeats, and BK is a get out of debt free card for people who don't feel like paying their debts, and maybe will lead to more understanding for the filers who truly have no alternative.

    4. There will be more emphasis on what your INCOME is, as opposed to your ASSETS. That again, I think is a good thing, for legitimate filers. If you're in debt but make $100,000 a year, why shouldn't the BK court force to pay some of that back?

  2. Alex

    Alex Well-Known Member

    Re: New BK laws aren't that ba

    You're right, from what I've read so far, it will only be tougher on people who have enough income to pay back debts and to wealthy people who file bankruptcy but still got to keep their luxury mansions and comodities.

    It definitely wont be a "get out of debt for free" ticket anymore.

  3. sam

    sam Well-Known Member

    Re: New BK laws aren't that ba

    45K for family of 4? Thats like the poverty line!! :) heh.
  4. ble103

    ble103 Guest

    Re: New BK laws aren't that ba

    I fully support the new BK law.It is about time our congress passed the law now president bush just needs to sign the bill into law.This law is designed to teach people to be very responsible with credit usage for they can no longer walk away from their financial responsibility.
  5. Dallas

    Dallas Guest


    $45K for a family of 4 is poverty? That is like two school teachers in the south getting married and having 2 kids.

    Somebody better do something about getting schoolteachers off the poverty line.
  6. carl

    carl Guest

    Re: poverty?

    Dont forget one part of this new law.
    In the HOuse version, any equity you have in a house is exempt from bankruptcy. For example, if
    you've got 1 million dollars of equity in a house the house is still safe.I
    In the Senate version, up to $125 thousand is safe.
    The senate version makes more sense to me. If you own a million dollar home, you should have to
    use it to pay back your creditors. Its another loophole for the wealthy
    Bush wants the house version of the law.
  7. Momof3

    Momof3 Well-Known Member

    Re: poverty?

    Well I'd hate to see what we would be considered at then, we are a family a five and grossed around 46k last year???
  8. AnnMarie

    AnnMarie Well-Known Member

    Re: poverty?

    <Mom, what area of the country do you live?
    I really depends on where you live. Here $10.00/hour or $20800.00 a year is pretty good money and it is also the median income. I live in Kingman, Az so our cost of living is pretty low.
    In addition to that, some people are much better at handling money than others---if this board shows nothing else, it defintely shows that!
  9. Momof3

    Momof3 Well-Known Member

    Re: poverty?

    We live in Va, cost of living here is low as well. I agree it depends on where you live. In my area I certainly wouldn't consider us to be at poverty, we are healthy and happy and that's what counts the most:)
  10. Dani

    Dani Well-Known Member

    Re: poverty?


    Just out of curiousity where in Virginia do you live? I live in the grand town of Culpeper. Woohoo!

  11. Momof3

    Momof3 Well-Known Member

    Re: poverty?

    Wow Dani small world, I've been there. Harrisonburg here:)
  12. $CM$

    $CM$ Guest

    Re: poverty?

    Here is why this law does not mean much: you never declare bankruptcy! Charge offs last 7 years, BK
    lasts 10. Just get an unlisted phone number if you get tired of the calls, and move away so they can't
    sue you. Get your new utilities under fake names or your girlfriends name, etc. Be sure the DMV does
    not have your real address on file. Have fun!


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