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Four new qualification requirements for Chapter 7 were added by the
new bankruptcy laws. These changes were implemented with the express
intent of preventing individuals and average ware earns from filing
Chapter 7. These four new requirements are:
- No one earning over the state median income may file Chapter 7
cases.
- Qualification requires proof that total debts exceed income
capability for repayment.
- Expected disposable income, over 60 months, may not be more than
$120 per month average, based on a new schedule of allowable monthly
expenses.
- Requirements include attendance in a certified credit counseling
and budget analysis program before filing.
As a result of these amendments, approximately 75% of all people who
filed under the provisions of Chapter 7 bankruptcy laws in the past
would now be disqualified because of these new laws.
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