Recent Changes to Bankruptcy Law

Ask a Boston Area Attorney About Recent Changes to Bankruptcy Laws

In 2005, new changes in the bankruptcy code took effect. While the revisions will not necessarily prevent you from qualifying for bankruptcy, it is important to know and understand how they may affect you. At Frisoli Associates, P.C., located in Cambridge, Massachusetts, our lawyers work with you to make sure you understand the law. We then guide you through the bankruptcy process so that you are well-prepared to participate in the legal decisions that create the best outcomes possible.

The new bankruptcy law created some additional requirements for filing bankruptcy. These include:

• Counseling requirements: Since 2005, bankruptcy law in the United States requires that most applicants attend pre-filing credit counseling in a government-approved program. They also must participate in a government-approved financial management education program after the conclusion of the court proceedings and before any debt can be discharged.
• The "means test" requirement for Chapter 7 filing: Bankruptcy applicants who now want to file for Chapter 7 bankruptcy must now pass a "means test" to qualify. This test applies if your current monthly income is more than the median income in your state. If you make more than the median income, the court considers factors like your monthly income, your expenses, and the total amount of your debt. People who do not qualify for Chapter 7 may still qualify for Chapter 13 bankruptcy relief.
• Fewer protections for filers: Bankruptcy law has traditionally provided protection called an "automatic stay" that automatically went into effect when applicants filed for bankruptcy. The 2005 changes altered or eliminated some of these protections.

Because of the changes, it is important to talk with an experienced and knowledgeable attorney about the requirements for qualifying for bankruptcy. You can learn more about the new bankruptcy codes and how your eligibility for bankruptcy may have been affected by calling 617-494-0200 or contacting us online.

When representing consumer debtors in connection with bankruptcy, Frisoli Associates, P.C. is a debt relief agency as defined by the Bankruptcy Code, 11 USC § 101(12A).