The present worldwide recession has compelled many things to change. This is also applicable to filing chapter 7 bankruptcy because the bankruptcy laws were made taking into consideration the earlier trends in economy. The factors that affected the economy in the past are different from those that affected the latest trend in economy.
Taking into consideration the economic turmoil and the factors affecting it Obama hinted at possible changes in the filing bankruptcy laws. This was when he was running for the presidential elections in Jan. 2008. The turn may be for good and can be bad. No one knows about it and speculations about this are very much confusing. The changes are going to most probably with reference to the following issues:
- Obama said that he would try that the bankruptcy court be liberal with those people who could prove that they were File chapter 7 bankruptcy because of medical expenses.
- He proposed that the 36% limit on payday loans that is now only offered to the military personnel be extended to all Americans.
- He proposed minimum homestead exemption for the military families that were facing bankruptcy. He also proposed to make the military families exempted from the means test and “unnecessary” paper work.
- He also wished for streamlining the procedure for filing chapter 13 bankruptcy for applicants who are victims of natural disasters.
- Obama had given indication that once in the president’s seat he will try his best to regulate the lenders. He held the federal government responsible for the lenders going out of control. He had revealed that he is pro ordinary working households.
- The creation of a 10 billion dollar fund is included in the proposal. This will be to stop foreclosures, get rid of some fees and taxes for people who have to sell their houses to get rid of the debts. This could help people to decide about when to file bankruptcy.
- He also mentioned about proposing changes in the consumer credit card sector. He said that many people were getting caught in the credit card system and this was not fair. He also quoted about the hidden fees and the high interest rates charged on the late fees. Most of the people seek bankruptcy advice because of credit card debt.
- He said that he would try to seek bankruptcy concessions for the senior citizens. He mentioned the senior citizens getting the minimum exemption at federal homestead that is equivalent to the average cost of the house. This would help the senior citizens at having financial independence and keeping their homes.
We at Loans Stores.com/bankruptcy advise that the people should seek guidance from a good reputed chapter 7 bankruptcy lawyer for filing bankruptcy.
For further information regarding the changes in bankruptcy laws click here