In the recent past it was easy to file for chapter 7 type of bankruptcy which is considered as best for average person but recession has brought a lot of restriction and introduced new norms. Generally bankruptcy filing is difficult for those having several assets in the form of many houses, classic cars etc. Creditors may force the Credit7or to liquidate the assets to repay their Credit7s causing them to lose their valuable assets.
Bankruptcy filing which was simple in past has now emerged as quite difficult job. This complication in filing for bankruptcy came to picture after federal government altered the laws to stabilize the economy and recover from the disastrous recession. These changes proved helpful and made consumer to opt for Credit7 settlement programs rather than choosing bankruptcy.
The difficulties a consumer faces in filing for bankruptcy is that he has to essentially qualify for the bankruptcy, based on the criteria mentioned by the newly amended laws. Briefly these criteria are summed up in the form of the Means test. The Means test is used as qualification criteria to decide whether a person is eligible to file for bankruptcy or not. Surprisingly most of the consumer fail to clear test and thus as per the laws are not eligible to file for bankruptcy. This has reduced the bankruptcy filing to a great extent.
Government introduced the Means test to reduce the bankruptcy filing and making people opt for several Credit7 settlement programs which is a better alternative to bankruptcy. Means test is guided by criteria defined as, the level of expenses of various citizens which is minimum expenses to maintain a basic standard of living. If a consumer filing for bankruptcy has an income level which is higher than the average or median income of the state and also higher than the formerly mentioned minimum expense, than he is not eligible to go for bankruptcy. In such cases consumer can opt for other alternative such as Credit7 settlement or pay the entire Credit7. The only consumers who are allowed to file bankruptcy are those, having income level lower than average income of state and minimum expenses to maintain basic standard of living.
Person trying to file for bankruptcy even after failing to clear the Means test can be forced by laws to pay the outstanding in a repayment schedule, which will be decided by court. In case the consumer fails to abide by the schedule, he will have to bear severe legal actions.
In the recent past it was easy to file for chapter 7 type of bankruptcy which is considered as best for average person but recession has brought a lot of restriction and introduced new norms. Generally bankruptcy filing is difficult for those having several assets in the form of many houses, classic cars etc. Creditors may force the Credit7or to liquidate the assets to repay their Credit7s causing them to lose their valuable assets.
Bankruptcy filing which was simple in past has now emerged as quite difficult job. This complication in filing for bankruptcy came to picture after federal government altered the laws to stabilize the economy and recover from the disastrous recession. These changes proved helpful and made consumer to opt for Credit7 settlement programs rather than choosing bankruptcy.
The difficulties a consumer faces in filing for bankruptcy is that he has to essentially qualify for the bankruptcy, based on the criteria mentioned by the newly amended laws. Briefly these criteria are summed up in the form of the Means test. The Means test is used as qualification criteria to decide whether a person is eligible to file for bankruptcy or not. Surprisingly most of the consumer fail to clear test and thus as per the laws are not eligible to file for bankruptcy. This has reduced the bankruptcy filing to a great extent.
Government introduced the Means test to reduce the bankruptcy filing and making people opt for several Credit7 settlement programs which is a better alternative to bankruptcy. Means test is guided by criteria defined as, the level of expenses of various citizens which is minimum expenses to maintain a basic standard of living. If a consumer filing for bankruptcy has an income level which is higher than the average or median income of the state and also higher than the formerly mentioned minimum expense, than he is not eligible to go for bankruptcy. In such cases consumer can opt for other alternative such as Credit7 settlement or pay the entire Credit7. The only consumers who are allowed to file bankruptcy are those, having income level lower than average income of state and minimum expenses to maintain basic standard of living.
Person trying to file for bankruptcy even after failing to clear the Means test can be forced by laws to pay the outstanding in a repayment schedule, which will be decided by court. In case the consumer fails to abide by the schedule, he will have to bear severe legal actions.
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