If Congress succeeds in passing the Bankruptcy Reform Act, how will it affect my ability to file bankruptcy?
The main thrust of the Bankruptcy Reform Act is to make it more difficult for the average person to qualify for a liquidating Chapter 7 bankruptcy. The proposed bankruptcy amendments would apply a complicated “means based” test that, for all intents and purposes, would throw most people into a Chapter 13 payment plan for 3 to 5 years. If Congress succeeds in passing the new legislation, it will not become effective until 6 months from the date of passage.
