Posted On: 2005-10-14Length:
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Today's the last business day to file for bankruptcy until the bankruptcy laws change forever. What does it mean for you? Listen in and we'll talk some more.
Good Friday everybody. This is Jay coming to you from the Debt Podcast from downtown New York City. Today is Friday, October 14, 2005. And it is the last business day to file for bankruptcy under the existing laws until they change forever. But what does that really mean to you? If you listen to news reports and you read the news and you surf online and you listen to the doom and gloom and the press, you'll know that there are many courthouses around the country where people are literally lining up all night just to wait until the bankruptcy court doors open so that they can file their petitions. That goes for attorneys, that also goes for people who are filing without the assistance of an attorney. It's kind of like an old style rock and roll concert where you'd have to get in line the night before, and first person in would get the best seats in the house. Everybody would kind of wait on their lawn chairs and they'd sing songs, and, but it's really different now because everybody's standing on line holding boxes of bankruptcy petitions. It's the most bizarre thing I've ever seen. And it just goes to show the amount of misinformation and disinformation that is floating out there in the press.
Now, it's true that bankruptcy is going to change forever. It is true that the laws as they exist today will no longer exist when the clock strikes 12 on Monday morning, October 17. It's true that there are a lot of different things that people are going to have to do. People file for bankruptcy are going to have to have turnover copies of their pay stubs, they're going to have to do a lot more work to get into the bankruptcy court. They're going to have to go through pre-filing, credit counseling, they're going to have to go through a financial management course in order to get their discharge form the bankruptcy court. But the upshot is that over 95% of the people who are filing for Chapter 7 bankruptcy now will still qualify for Chapter 7 bankruptcy after the new law comes in. Let that sink into your head. Some of you have been calling attorneys, begging for appointments, only to hear that perhaps you haven't enough time in terms of being able to pay any legal fees on time. That's a big barrier to entry. When you pick up the phone and you call a bankruptcy lawyer and there's only five days or four days, or whatever days left until the law changes, and you're told that suddenly the legal fee is going to be over a thousand or over fifteen hundred dollars even before the court filing fee comes into play, many people have been unable to file, in spite of the large number of people who have filed, and who are filing...