p.c. - nassau bankruptcy lawyer division is now providing comprehensive debt relief to long island debtorsThe Bankruptcy Abuse Prevention and Consumer Protection Act was became productive on October 17, 2005 (except for a couple of provisions). This amendment to the Bankruptcy Code is a main revision of the 1978 Bankruptcy Code and deals mainly with consumer bankruptcy. It was passed in response to rising bankruptcy filings and is ba...

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The Bankruptcy Abuse Prevention and Consumer Protection Act was became productive on October 17, 2005 (except for a handful of provisions). For more information, consider having a gander at: http://entertainment.easterntribunal.com/news/the-gordon-law-p-c-nassau-bankruptcy-lawyer-division-is-now-providing-comprehensive-debt-relief-to-long-island-debtors/0157850/. This amendment to the Bankruptcy Code is a key revision of the 1978 Bankruptcy Code and offers primarily with consumer bankruptcy. Visit The Gordon Law, P.C. - Nassau Bankruptcy Lawyer Division Is Now Providing Comprehensive Debt Relief to Long Island Debtors to explore the reason for it. It was passed in response to rising bankruptcy filings and is based on a concept of elevated individual responsibility. This post offers a quite brief explanation of the means test that is designed to dump some debtors out of Chapter 7 and into Chapter 13:

Most debtors would of course choose to discharge their debts below Chapter 7 rather than pay into Chapter 13. For debtors with the capability to pay, nevertheless, this will not be practically as automatic as before. Beneath the previous version of the Bankruptcy Code, a locating of "substantial abuse" had to be created before a debtor was barred from Chapter 7 relief. Under the new law, this normal is reduced to "abuse" (one act of abuse is sufficient rather than substantial abuse). Abuse is now presumed for debtors deemed to have the implies to spend into Chapter 13. This implies test applies to debtors net present monthly incomes higher than their state's median income.

The implies test has two prongs:

1. If the debtors net monthly income right after deductions is at least $166.67, the debtor is presumed to be ineligible for Chapter 7 relief.

two. This wonderful The Gordon Law, P.C. - Nassau Bankruptcy Lawyer Division Is Now Providing Comprehensive Debt Relief to Long Island Debtors paper has diverse dazzling suggestions for the reason for it. If the debtors net monthly earnings is at least $100 and the debtor is deemed to have the means to pay at least 1-fourth of his/her unsecured debt over five years, then the debtor is presumed to be ineligible for Chapter 7 relief.

What all this indicates is that debtors who file under Chapter 7 will be forced to spend as significantly as they can below Chapter 13 if they can afford to unless they can prove that they are not abusing the program by filing under Chapter 7 . The word presumed simply means that whatever is presumed will be taken as accurate unless verified otherwise - the burden of proof has switched to the debtor to prove there is no abuse rather than on the government to prove "substantial abuse" as just before..