What Is The Difference Between The Old Bankruptcy Law And The New Bankruptcy Law?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Jan 30, 2007 in General Bankruptcy Information
The “old” bankruptcy law lives on within the new bankruptcy laws, but with major changes to how people file and some of it’s benefits.Some legal benefits that were available under the old law are not available under the new law. New forms are required, along with more detailed documentation. The requirements under the new law make it harder for people who can afford to repay debts to file bankruptcy and/or may require that more of their debt be repaid than was required under the old law. The new law is supposed to encourage filing Chapter 13 instead of Chapter 7, even though it also took away some favorable aspects of Chapter 13.
But people who would consider filing bankruptcy under the old law are probably good candidates under the new law too. There are still many benefits to filing for bankruptcy under the appropriate circumstances. Bankruptcy can still reduce debts and/or eliminate debts. Bankruptcy is still a good way to stop foreclosures, repossessions and deal with various garnishments of wages. Bankruptcy can still offer protection from creditors, and help preserve assets.
All in all, the similarities of the old law and the new law are what we should be concentrating on, not the differences.
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