When Filing Chapter 13 or Chapter 7 Bankruptcy, debtors must perform their intent to surrender, reaffirm, or redeem debt secured by property of the estate within 30 days after the first date set for the meeting of creditors. There are some other provisions fitting particular circumstances, and the best source for that information would be a good bankruptcy attorney in fact, having a good attorney may be the only way to completely avoid the pitfalls of inadvertent Bankruptcy abuse. Previous bankruptcy abuse has been addressed by several provisions, and they are: increased protection for secured debtors; prompt filing of schedules and other information; adjustments to ensure that creditors receive notice of filings; require plans to extend for five years for debtors with incomes over the statutory limit; and limit the shelter to real estate assets. Also the time between filing Chapters 7 and 13 has been expanded to eight years. Further, non dischargeable debts have been expanded. The Court has to trust that the debtor will comply with the requirements under the law, and the debtor trusts that he will be protected and his work will be appreciated.
Clearly, the new Chapter 13 Bankruptcy law has made filing under that provision more difficult, and have given greater protection to creditors. For debtors who are in the position of really needing the protection of these provisions for getting out from under an excessive debt burden, this is probably not a total deterrent. A qualified bankruptcy attorney will be able to evaluate an individual’s position and explain the requirements thoroughly, so one can navigate the proverbial rough waters with some certainty. On the other side of the coin, bankruptcy abuse should certainly be substantially reduced.