J.K. Lasser's The New Bankruptcy Law and You (J.K. Lassers)

A comprehensive guide to the new bankruptcy law--and what it means for you Sweeping changes to U.S. bankruptcy law--the first major changes to the law in twenty- seven years--are occurring right now. If you're unfamiliar with the new bankruptcy law and how it could affect you, this book will quickly get you up to speed. While J.K. Lasser's The New Bankruptcy Law and You thoroughly covers this latest reform, along with its options and alternatives, it also answers must-know bankruptcy questions, such as: how do you decide whether bankruptcy is the right path to take, and if it is, when should you file? Other topics discussed include: • The new law versus the old law • The basics of bankruptcy law that apply to all bankruptcies • Preparing to file for bankruptcy • The liquidation option: Chapter 7 • The payment plan option: Chapter 13 • The basics of debtor-creditor law • Preparing for a bright financial future • And much more With over twenty years of experience as bankruptcy attorneys, and a dozen years of experience educating people about money, authors Nathalie Martin and Stewart Paley can help you successfully navigate the world of bankruptcy and show you how to put yourself in a position where you'll never have to think about it again. Filled with in-depth insights and expert advice, J.K. Lasser's The New Bankruptcy Law and You can help you make more informed financial decisions when dealing with complicated bankruptcy issues. J.K. Lasser's THE NEW BANKRUPTCY LAW AND YOU 5 Acknowledgments 9 Contents 11 Foreword 13 Introduction 17 Chapter 1: How Did I Get into This Mess? 19 The Consumer Credit Boom 19 Who Are the Bankruptcy Debtors? 25 Job Market Volatility 25 Rising Health Care Costs 25 Divorce 26 Chapter 2: Psychology of Debt 101: It’s Not All Your Fault So You Needn’t Feel Guilty 27 Ditch the Shame and Guilt 27 Learn What Is Important to You: A Spending Self-Examination 28 Ditch Shopping as a Pastime 29 Chapter 3: Happiness Through Saving 30 The Cash Habit: Getting Off Credit and Saving for Things in Advance 30 Saving Money 32 Chapter 4: The Economics of Consumer Credit 39 The Profits of Credit Card Companies 39 Lending to the Weak 40 Late Fees and Other Unpleasant Surprises 40 Universal Default Provisions 41 How Long Will It Take to Pay Off Your Balances? 41 Most of Us Are in Denial about What We Charge and Pay Interest On 42 People Spend More on the Cards Than They Do with Cash 43 Chapter 5: The Basics of Debtor– Creditor Law: A Quick Vocabulary Lesson 44 Debtor and Creditors 44 Secured Versus Unsecured Debts: Types of Liens 45 Types of Secured Claims or Liens 47 State Collection Law and Exemptions 48 Introduction to the Different Types of Bankruptcy 49 Introduction to the Concept of Discharge in Bankruptcy 53 Chapter 6: Do I Need a Bankruptcy at All?: Assessing Your Situation 56 Tracking Your Expenses 56 Alternatives to Bankruptcy 60 Chapter 7: The New Law versus the Old Law: If I Need to File, Should I File Now or Later? 69 How Can You Tell If You Need to File a Bankruptcy, or Whether You Can Instead Do Something Else? 70 If You Need to File and You Wait, It Could Be Much Harder to Find a Lawyer and Much More Expensive to File 70 If You Need to File and You Wait, It Could be Harder to Pay Off Secured Debts 71 Means Testing: Fewer People Will Qualify for a Quick Discharge 72 Fraud Debts and Intentional Tort Debts 73 Making Mistakes Is More Costly Under the New Law 74 Credit Counseling 74 Chapter 8: Preparing to File for Bankruptcy: Don’t File without Reading This! 75 The Full Disclosure Requirements 75 The Filing Fees, Legal Fees, Deposits, and Other Money You Need to File 76 Getting All Your Paperwork in Order 77 Timing the Filing 78 Chapter 9: Basics of Bankruptcy Law That Apply to All Bankruptcies 80 The Automatic Stay 80 Property of the Debtor’s Estate 85 Basic Bankruptcy Law, Courts, and Procedures 87 Exemptions 90 Priorities 96 The Avoiding Powers 96 Chapter 10: The Treatment of Secured Creditors in Bankruptcy 100 Secured Credit in General 100 Chapter 11: Basic Bankruptcy Procedures 103 The Paperwork 103 Special Chapter 7 Procedures 110 The Rest of a Chapter 7 Case: The Section 341 Creditors’ Meeting 111 After the Creditors’ Meeting, What Happens? 114 Chapter 13 Procedures 114 More Information Required under New Law 115 Chapter 12: The Chapter 7 Discharge and Its Limitations 119 The Chapter 7 Discharge: Some General Concepts 119 Exceptions to Discharge 121 Objections to the Debtor’s Global Discharge 129 Chapter 13: Keeping Secured Property in a Chapter 7 Case 133 Redemption 134 Reaffirmation: When Is It Necessary or Advisable? 134 Chapter 14: Dismissal of a Chapter 7 Case: The New Issue in Consumer Bankruptcy 137 Dismissal for Failure to Cooperate in the Case 137 Dismissal for Abuse of a Chapter 7: The Old Standard and the New 138 How Can I Rebut the Presumption? 143 Chapter 15: Chapter 13 Payment Plan Cases 144 An Overview of Complex Chapter 13 144 Chapter 13 Eligibility 147 Secured Creditor Treatment Under Chapter 13 147 The Treatment of Priority Claims in a Chapter 13 152 The Disposable Income Test in a Chapter 13 154 The Good Faith Test in Chapter 13 157 The Best Interest of Creditors Test 160 Chapter 13 Plan Feasibility 161 Modification of a Chapter 13 Plan or Dismissal of a Chapter 13 Case 162 Just a Bit More on the Chapter 13 Discharge Under the New Law 163 Chapter 16: Business and Bankruptcy Law 164 Chapter 17: Investing and Your Future 166 Appendix: Chart of State Law Exemptions 169 Glossary 227 References 237 Index 239 How did I get into this mess? : a story about proliferating credit, volatile job markets, rising health care costs, and you Psychology of Debt 101 : it's not all your fault so you needn't feel guilty Happiness through saving The economics of consumer credit The basics of debtor-creditor law : a quick vocabulary lesson Do I need a bankruptcy at all? : assessing your situation The new law versus the old law : if I need to file, should I file now or later? Preparing to file for bankruptcy : don't file without reading this! Basics of bankruptcy law that apply to all bankruptcies The treatment of secured creditors in bankruptcy Basic bankruptcy procedures The Chapter 7 discharge and it's limitations Keeping secured property in a Chapter 7 case Dismissal of a Chapter 7 case : the new issue in consumer bankruptcy cases Chapter 13 payment plan cases Business and bankruptcy law Investing and your future. A comprehensive guide to the new bankruptcy lawsSweeping changes to U.S. bankruptcy law-the first major change to the law in 27 years-are occurring right now. The intent of this reform is to require people who can afford to make some payments towards their debt to make these payments, while still affording them the right to have the rest of their debt erased A comprehensive guide to the new bankruptcy law coming into effect in 2006 includes information on preparing to file for bankruptcy, the liquidation option, the payment plan option, the basics of debtor-creditor law, and more