While bankruptcy laws exist for both the protection of debtors as well as creditors, the system has been subject to abuse. Therefore, Congress chose to overhaul bankruptcy laws four years ago through the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. While a reputable bankruptcy lawyer in BRONX can advise you best, here is a partial list of some of the key changes the law addressed:

1. Mandatory Credit Counseling:  Before a petitioner can file for bankruptcy, the law now requires a consumer to undergo mandatory credit counseling via a government-approved program (click here < http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm> for a list of approved providers), or your professional bankruptcy lawyer in BRONX can refer you to a qualified counseling agency.
    
2. Requirements for Tax Returns and Proof of Income:  Consumers wanting to file either Chapter 7 or Chapter 13 must now furnish proof of income via their tax returns in order to qualify for bankruptcy protection.
    
3. A New “Means Test” to qualify for Chapter 7:  The new means test is based upon the median income for your state. As a general rule, if you make more than the median income and have $100 leftover to put towards debts (after meeting your essential monthly expenses), then you have to file under Chapter 13. An experienced bankruptcy lawyer in BRONX can advise you further about whether this.
    
4. Fewer Automatic Protections (“Stays) for Filers:  In the past, people who filed for bankruptcy protection enjoyed an array of automatic protections (in legal terms, called ‘Stays’) from their creditors. Under the new law, however, some of these protections have been eliminated, including protection from eviction or from driver’s license suspensions. Again, a seasoned bankruptcy lawyer in BRONX can explain the parameters of this aspect of bankruptcy law in greater detail.
    
5. New Priority for Unpaid Child Support and Alimony:  Money for back payments for child support and/or alimony (or new obligations to pay for these expenses) qualify as familial debts, which are now given top priority in the hierarchy of creditors.
    
6. Mandatory Financial Education at the Conclusion of the Bankruptcy Action:  As your bankruptcy process winds down, the new law requires you to undergo a mandatory financial education program before you will be allowed to have a final discharge of your debts. A reputable bankruptcy lawyer in BRONX can refer you to a government-approved program that will help you meet this final requirement.

–