Chapter 7 Success Lawyers Chicago - How has Chapter 7 mostly changed since BAPCPA?

How has Chapter 7 mostly changed since BAPCPA?

The biggest change in Chapter 7 Bankruptcy post-reform is the additional demands upon the debtor in terms of documentation and in terms of credit counseling/debtor education requirements. For the most part, the end result is the same as before. A debtor filed a petition for relief under Chapter 7 of the U.S. Bankruptcy Code and receives a discharge under Chapter 7 approximately 120 days thereafter. The demand placed upon the debtor in exchange for the discharge has increased significantly.

For example, prior to filing, a Chapter 7 debtor must submit to a credit counseling session with a counseling agency approved by the United States’ Trustee. The session is relatively easy and mostly uneventful. The debtor data entries information about his income, expenses, assets and liabilities. He reads about non-bankruptcy options and receives a certificate for his efforts. This comes at a price of approximately $50.00. Additionally, the Chapter debtor must provide a copy of his most recent federal tax return. Lastly, the Chapter 7 debtor must take a two-hour, financial management educational class. This class sets the debtor back another $50.00 and he receives another certificate. All of this extra effort is required to obtain a discharge under Chapter 7 of the US Bankruptcy Code.

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