The new laws on Bankruptcy
There are new laws that have been established when it comes to bankruptcy. Actually the laws came into effect on October 17th, 2005 but not too many people know about them. In this article will try to understand what these laws are and how they can help or harm consumers. All laws are established for a reason and whether we like them or not they do justify order for most involved. Knowing how debt laws work and how they can affect you and your family will only be beneficial to one’s financial future.
One of the most talked about issues when it comes to the new bankruptcy laws is what is allowed to be discharged and what cannot? The new law states that these debts cannot be discharged:
Alimony and child support – These debts are still active and must be paid to the receiver with no question or one may face criminal prosecution. These types of debts are legal and binding and cannot be ignored or lowered in any program.
Criminal DUI offenses – If one has been convicted of harm or death while driving under the influence and ordered to pay restitution of any sort the order still stands and cannot be discharged. Criminal prosecution will come into play if the ordered person does not pay the debt to the courts or the persons that the order was intended for.
Some court orders – Any court order that has someone paying restitution due to injury, death, or fraud the laws state that they cannot be discharged. In no way can these debts be removed by any type of debt program. They must be paid in full or the person that owes the debts will face criminal prosecution.
Unnecessary credit card charges – If big credit card purchases are charged right before a bankruptcy has been filed the court can order against this. Most people go on a spending spree right before filing and the court is not fond of this type of deception. In some cases consumers make it a little obvious so it is wise to watch your spending before filing.
Some secured debts – All debts that are secured are look at more closely before being discharged or added into the filing. Depending on the type of debt, what has been paid and income the rules are a bit more strict. Most of these debts do qualify but there is more through procedure.
All of the new laws are there for the benefits of everyone involved and should be followed as they are written. We must admit that we are at fault for the debts or orders and should abide by them. Receiving the credit card help that we are offered is a blessing and we should do whatever it takes to stick to our court ordered rulings. It is wise to get legal counsel when it comes to filing due to all of the legal processes that take place.
Learn more about these new laws through our recent press release.