Abuse of bankruptcy law and protection

Complete set of bankruptcy was FindLaw.com, the bankruptcy abuse prevention and Consumer Protection Act of 2005 in more than 25 years reform at the time of its adoption. As stated in the law, it was intended, prevent abuse of the bankruptcy debtors who would rather file bankruptcy and they have your credit for 10 years before the coast a negative reports of all your debts to pay if you were so. Why ReformIn 1998, bankruptcy filings exceeds 1 million for the first time in the history of the United States and in 2004, the number of deposits increased deposits over 1.6 million. Consumers begin to see how a last refuge is more to their debt problems but a first stop in an effort to get rid of your debt bankruptcy. The existing bankruptcy system had gaps, the bankruptcy abuse occur.Witness TestimonyAs crowded enabled bankruptcy deposits, the cost the Americans, who pay for your debts were responsible unable to collect the debt passed. A witness testified this trend the Judicial Committee of the Senate hearing: "if creditors fail, liabilities due to insolvency, some of these losses to collect are inevitably passed us officials, the height of their financial obligations." Each invoice telephone, electricity, mortgage, purchase of furniture, medical law and car loan contains an implicit bankruptcy "Fee" to pay to subsidize those who pay your bills to do the rest of us. "Means that the adoption of the Bankruptcy Reform Act, a means test is used to determine which part of the debtor code a bankruptcy TestWith can deliver." Many personal bankruptcies are classified under Chapter 7. Reform, fewer people have filed, to protect derIon bankruptcy Chapter 7. The means test compares the debtor of the mittlere family income family income in his State for the families of the same size. If his income Estinférieure or equal to the median family income for Chapter 7 bankruptcy can file. The purpose of this test is to determine whether a debtor registered seeking bankruptcy protection has the means to his but creditors.Chapter to reimburse bankruptcy Chapter 7, not exempt assets of the debtor by a trustee in bankruptcy court sold are then used to pay the proceeds from the sale of the debtor's creditors appointed. At the end of the process, the debtor will probably the remaining debts discharged. If however, the debtor's income of the State median is more than the, still committed it is chapter 13 AbuseIf bankruptcy.Presumption file after filing Chapter 7 bankruptcy protection declared and use the income of the debtor means test more than the median of the State, shall be presumed that the debtor was trying, abuse of the bankruptcy process. A person is one who can pay back its debt Einkommen above the minimal State is the law regards. In this case bankruptcy or no are logged on the debtor in chapter 13 converted file bankruptcy protection at all. Chapter 13 bankruptcy, must a debtor its debt in an amortisation table numbers spanned three to five years.