Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Consumers Race to File Bankruptcy Petitions
Old 10-14-2005, 01:06 PM   #1
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Consumers Race to File Bankruptcy Petitions


The new bankruptcy law is bringing the LATM folks out in droves to file before the law changes on Monday. Yikes!

AP

"...Across the nation, about 100,000 petitions were filed in the first three days this week, according to Burlingame, Calif.-based Lundquist Consulting, which compiles bankruptcy statistics. The firm said 102,863 were filed last week, a record expected to fall.

The new law, the most sweeping reform of the U.S. Bankruptcy Code in decades, takes effect Monday, setting new limits on personal bankruptcy filing and requiring people to get professional credit counseling before they may file petitions. It will prohibit most filers with above-average income from filing Chapter 7 petitions that allow debts to wiped out.

Instead, people deemed by a "means test" to have at least $100 a month left over after paying certain debts and expenses will have to submit a five-year repayment plan under the more restrictive Chapter 13.

At the U.S. Bankruptcy Court here, clerk Brad Bolton said the number of filings set a record every day this week, with nearly 2,000 filed on Thursday alone.

"We've never seen anything like this," he said, standing in a corridor near the courthouse door. "Every day has just gotten worse than the day before.""



__________________

__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Consumers Race to File Bankruptcy Petitions
Old 10-14-2005, 01:10 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Consumers Race to File Bankruptcy Petitions

I get the feeling we are getting half a year's woth of filings in the 6 or 8 weeks leading up to the change. Ain't gonna be pretty for anyone in trouble after Sunday.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Consumers Race to File Bankruptcy Petitions
Old 10-14-2005, 01:50 PM   #3
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Consumers Race to File Bankruptcy Petitions

I bugged out of town and out of the practive before the rush. Haven't filed bankruptcy for anyone in about a year. Most bankruptcy lawyers I know quit taking cases a while ago to get them all done before the law changed. Lot of the people coming in to file in the last few days are doing it without an attorney. The clerks are having a great time trying to process it all.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Consumers Race to File Bankruptcy Petitions
Old 10-14-2005, 01:57 PM   #4
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Re: Consumers Race to File Bankruptcy Petitions

Does this new law have any impact on business/corporation filings??
__________________
JPatrick is offline   Reply With Quote
Re: Consumers Race to File Bankruptcy Petitions
Old 10-14-2005, 02:00 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Consumers Race to File Bankruptcy Petitions

Quote:
Originally Posted by JPatrick
Does this new law have any impact on business/corporation filings??
Yes. Many, many things change to make it a lot less advantageous to file. That is why so many corporations filed recently. Martha, would you like to give us a summary of the changes to corporate BK?
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Consumers Race to File Bankruptcy Petitions
Old 10-14-2005, 02:18 PM   #6
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Re: Consumers Race to File Bankruptcy Petitions

Yeah, but not right now. I am sitting here on the road on a nice wi-fi connection and not in the right state of mind to think too much about bankruptcy. Most of the changes to Chapter 11 rules involve trying to shorten up the process. A number of the changes will make it less likely for businesses to successfully reorganize. For example, a chapter 11 debtor will have a relatively short time to decide whether to accept or reject a lease. The shortened time period will make it very difficult for debtors, like Macy's or Kmart, to make a good decision as to whether a location is viable.

Most of the changes are boring stuff like this.

The true purpose of bankruptcy reform was to make it more difficult and expensive for individuals to file bankruptcy.
__________________

__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Count down to bankruptcy reform Martha Other topics 3 10-05-2005 08:05 AM
Bankruptcy Code amendments Martha Other topics 6 04-19-2005 08:42 AM
Credit Cards, Debt, and Bankruptcy Eagle43 FIRE and Money 68 03-21-2005 07:25 AM

 

 
All times are GMT -6. The time now is 08:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.