New Bankruptcy Law Takes Effect

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 goes into effect on Monday, October 17, 2005. The new law makes it harder for people to qualify for a Chapter 7 bankruptcy and imposes tighter rules around budgets for Chapter 13 re-payment plans. The new bankruptcy law also requires people to have filed all their tax returns for the previous four years. This new rule makes it more difficult to discharge tax debts under the new bankruptcy laws. Resources for understanding the new bankruptcy laws:

• Taxes and Bankruptcy - the new laws make it harder to discharge tax debts.
• New Bankruptcy Law Makes It Harder to Erase Your Debts - About Financial Planning.
• The New Bankruptcy Law - Nolo Press
• Understanding the New Bankruptcy Law - Findlaw
• Understanding the new bankruptcy law - Bankrate