New Bankruptcy Law

New Bankruptcy Law Changes

The Law Office of

Mark A. Reed

Attorney at Law

Serving San Diego with Honesty, Integrity, and Affordability

858-277-0232

On October 17, 2005, the new bankruptcy law change that the Congress of the United States of America had previously passed went into effect. This law protects giant credit card companies and multinational credit banks from themselves and their own excesses and bad faith lending practices.

At The Law Office of Mark A. Reed, Esq., we believe that the new bankruptcy laws need to be amended to take into account the fact that large creditors have created many of their own problems, and now want to be protected from their own lack of responsibility. We are a family law and litigation law firm that offers bankruptcy filing services for individuals who have fallen victim to credit card company marketing tactics. Attorney Mark A. Reed is a 2006 bankruptcy laws lawyer who understands that most people who use credit try to be responsible. Taking away Americans’ right to a fresh start seems terribly wrong in a country that was founded on the very concept of a fresh start. He will fight for you against the giant credit card companies.

Have you ever wondered why so many giant credit card companies are headquartered on the unpopulated prairies of South Dakota? The reason is simple. South Dakota is one of the few states without realistic state usury laws. Why is this fact important to the average consumer? This allows credit card companies to charge you any amount of interest they want – even 30%.

How the new bankruptcy means test law affects you:

If your current income is higher than your state’s median income, a means test will be applied to determine whether you can apply for total debt relief (Chapter 7 bankruptcy) or a debt repayment plan (Chapter 13 bankruptcy).

Subtract your total expenses from your total monthly income, multiply by sixty.

You can file for Chapter 7 debt elimination if:

The result is less than $6,000.

Or: If the result is less than 25% of your consumer credit card debt.

You must file for a five year Chapter 13 debt repayment plan if:

The result is 10,000 or more.

Or: if the result is more than 25% of your consumer credit card debt.

Under the new bankruptcy laws, you will be required to attend a credit counseling course prior to filing your bankruptcy petition. Before you can receive a bankruptcy discharge, you must also register and complete an approved debtor education course.

In addition to the new means test, creditors can now look several years further back into your financial history to determine whether you have hidden assets.

It has been our experience that ninety-five percent of people who take the means test at our office still qualify for Chapter 7 debt elimination bankruptcy!

If you are looking for a quality, professional attorney in the San Diego, California area, contact San Diego bankruptcy lawyer Mark A. Reed today for a free consultation about your legal needs.