I predict a HUGE # of bankruptcy filings in the next 6 months due

to Katrina and Rita. Any economic gurus here? What is that likely to do to our already teetering economy. I don't think many of them have a choice since this administration refuses to repeal their new bankruptcy law, people must file before it takes effect or they may not be able to at all. What are your thoughts on this?

Okay, after posting this someone here says there is a deadline I wasn't aware of...NEXT WEEK. So, in that case, I guess it will be a hell of a busy week for that office.

If yes, unless you come under some other provision of the Bankruptcy code (and there is several that can apply but the big one is Median Income, than you have to file Chapter 13. But if your income is below Median Income for your state (around $40,000) OR you have less than $100 a month left over after some "priority" bills (Mortgage, Car payments, utilities etc) than you can still file Chapter 7.

The bankruptcy Code is estimated to affect about 5% of all filers, thus while still a bad law it is NOT as bad as the changes were when first proposed.

The only big difference for people below Median Income is they MUST go through Credit Consoling by an "Approved" counseling agency (Who can change a fee). If you income is below 150% of the poverty level you can get both the Consoling fee and the filing fee waived.

really. That would make it easier to file Chapter 7 (but still more annoying to do so than now).

Close of business at the Bankruptcy Clerk's office on 10/17/2005, and you will no longer be able to file a full liquidation Ch. 7 -- if your income is above median income for your state. In other words, you'll be forced into a payment plan, if your income exceeds the median. The government figures the median.

I figure that'll be kind of a busy day at the Clerk's office, don'tcha think?!

be my guess.

for Katrina, Rita hurricane victims. Six-month extension, or something.

All other requirements of the new Act is still in place. Please note even this waiver is restricted.

“Last fall, the Debt Relief Legal Clinic was the busiest bankruptcy law firm in San Diego, filing 90 personal bankruptcy cases in September and October. This year, the firm expects to file more than 330 during the same period.

- snip -


“Nationally, 1.24 million people have filed for bankruptcy through early September, the latest figures available. That is 9.2 percent above 2004 levels, although with the sharp escalation of filings in recent weeks, bankruptcy officials expect a record number of personal bankruptcies this year.

- snip -

“The credit-card industry lobbied hard for the revised bankruptcy law, arguing that a rise in personal bankruptcies nationwide from 900,000 in 1995 to 1.6 million last year was costing card issuers too much money.

“Even though profits of the credit industry more than doubled during that same period, the industry pressed hard for stricter bankruptcy laws.

http://www.signonsandiego.com/news/business/20051009-9999-1b9bankrupt.html

then.

to the Oct 17th deadline. It'll never see the light of day.

for Chapter 7 before the deadline, as long as they don't lose their assets in the process.

I filed in 2004 and erased $20,000 worth of credit card bills, I'm just sorry I wasn't $200,000 in debt

Credit Card companies are just as corrupt as the Bushes or Halliburton, if you owe them something, they will invade your property, rape your wife and kill your toddlers.

I have seen a lot of those commercials saying people should hurry up and declare bankruptsy cause the government is taking the option away. I'm quite sure the lawyers are seeing a large increase in pay lately.