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  • Add You - Bankruptcy: What the New Law Means to You

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    s money owed on credit cards, are discharged.

    In comparison, a Chapter 13 Bankruptcy is a reorganization bankrupt

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    On April 20 of this year, President Bush signed a bankruptcy reform law. When this law went into effect in October it made it much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives.

    Under the old law, you could choose to file either a Chapter 7 or Chapter 13 Bankruptcy. In a Chapter 7 proceeding, you are allowed to keep your exempt property, such as much of the equity in your home. Most of your other debts, such as money owed on credit cards, are discharged.

    In comparison, a Chapter 13 Bankruptcy is a reorganization bankruptc

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    ade it much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives.

    Under the old law, you could choose to file either a Chapter 7 or Chapter 13 Bankruptcy. In a Chapter 7 proceeding, you are allowed to keep your exempt property, such as much of the equity in your home. Most of your other debts, such as money owed on credit cards, are discharged.

    In comparison, a Chapter 13 Bankruptcy is a reorganization bankrupt

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    Under the old law, you could choose to file either a Chapter 7 or Chapter 13 Bankruptcy. In a Chapter 7 proceeding, you are allowed to keep your exempt property, such as much of the equity in your home. Most of your other debts, such as money owed on credit cards, are discharged.

    In comparison, a Chapter 13 Bankruptcy is a reorganization bankrupt

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    you are allowed to keep your exempt property, such as much of the equity in your home. Most of your other debts, such as money owed on credit cards, are discharged.

    In comparison, a Chapter 13 Bankruptcy is a reorganization bankrupt

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    s money owed on credit cards, are discharged.

    In comparison, a Chapter 13 Bankruptcy is a reorganization bankruptcy. In this type of proceeding you agree to pay off your debts over a period of three to five years.

    The result of the new law is that fewer people will be able to file for Chapter 7 Bankruptcies and will be forced to file for Chapter 13 Bankruptcies, instead.

    Major Changes

    Possibly the biggest change to bankruptcy law is that there will now be a qualifying test. Under this two-part test, you will first be required to apply a formula that exempts ce

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