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November 16, 2007, Newsletter Issue #38: Bankruptcy Law Changes And The Court
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Tip of the Week
Recent changes in the federal law require different standards for a person to file a valid petition for bankruptcy protection. The burden of proof of a person’s inability to pay off his/her debts has increased substantially. The federal bankruptcy court or bankruptcy district court must apply these new standards to all petitions coming before them, regardless of the state in which they operate. Hence, the bankruptcy court must now make additional judgments based on the results of the petitioner’s counseling requirement and higher level of proof that a payoff of all debt is a financial impossibility.
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