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Numerous new restrictions now limit who may file Chapter 7, establish
new income restrictions for filing bankruptcy under Chapter 13, and
create rules for qualification in all chapters pertaining to tax
returns, credit counseling, and presumptions of bad faith. Attorney
guidelines have also changed, and create increased potential personal
liability for misrepresentations made by debtors or the attorney.
Overall, the burden of proof in many new circumstances has been
shifted to debtors to show entitlement for relief, and limited the
discretion of judges when considering motions filed by creditors. Declaring
personal bankruptcy is now more difficult in all cases, and creditors
included in Chapter 13 plans should realize higher recoveries because of
increased payment requirements.
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