How does the new Bankruptcy Law effect me?

First it sets a policy that every individual filing for protection under the Bankruptcy Act must take a credit counseling class. Second, it creates standards for expenses that can be used against your income to determine whether you qualify for Chapter 7 or 13. Third it creates an assumption that if your income is greater than the median income in your area, you will be required to file a Chapter 13 petition rather than chapter 7.

Why do they call it Chapter 7 or 13 Bankruptcies?

Because the different types of bankruptcies are based on the respective chapters of Title 11 - Bankruptcy Statute of the United States Code.

Do I have to pay any of my bills or are they all gone after a bankruptcy?

There are certain bills that you have to continue paying (examples, electric, gas, phone, etc). Some bills though will be forever gone. Of course with this discharge of debt comes bad credit. You should speak with an attorney about what debt will/can be discharged and what bills should be paid during the bankruptcy proceeding.

Can I protect all of my assets if I file a bankruptcy?

The Bankruptcy Statutes allow you to protect certain assets up to amounts of dollar values set by the statute. This is one reason why an attorney is important to a potential bankruptcy filer. The attorney can help the filer understand the law and what assets can and cannot be protected.

If you own a home and are behind on mortgage payments, Chapter 13 is most likely the chapter you will file under. In this case where a house is at risk, it is incredibly important that you speak to an attorney to discuss this matter as quickly as possible.