Maia Davies` Blogging World

Eliminating or paying off debt under the protection of the bankruptcy law is one thing to seriously look into. Under Chapter 7, debt is forgiven while under Chapter 13, it is expected that a person follow a debt payback plan. The old bankruptcy law allowed filers to basically choose which chapter they preferred to file under. Also, Chapter 7 filers could value their property at the auction price under the old Bankruptcy Law. The new law puts the retail price on personal property, increasing the value and the chance of the property being repossessed. Under the old law, debtors were allowed to keep an amount of personal property regulated by the filers state of residence. The new law requires at least two years of residence in the state before using their exemption laws. When the old law was enacted, housing and food allowances were determined by the actual cost.

This entry was posted on Sunday, August 30th, 2009 at 11:56 am and is filed under Miscellaneous.