Bankruptcy: There are many changes to the new bankruptcy law. Some changes are good for the consumer, some changes are good for the creditor. Here are some highlights:
Debtor Required Class - The debtor must now take a class in fiscal management.
NO Credit Charges Within 3 Months - The law also requires all charges on cards within three months of bankruptcy be paid by the consumer.
Child Support - The new law sets a higher priority on both child support and alimony.
IRA's - Bankruptcy should and will now protect money set aside in an education IRA but at the same time it puts a cap on what can be shielded from creditors in a Roth or other IRA.
Living Expenses Dictated by Court
Debtor Cannot Shield Assets by Moving to Florida or Texas and Buying Expensive Homes
Auto Loan - The full auto loan must be paid or lost to repossession even if the vehicle is not worth the outstanding balance.
Tenant Evictions - The new law "makes it easier for landlords to evict bankrupt tenants who are behind on their rent."
Dissolved Bankruptcy Plan - Creditors can ask the court to dissolve the established plan "if a debtor is late in filing paperwork, such as copies of paycheck stubs and tax returns."
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