New 2011 Bankruptcy Laws
2011 was a tumultuous year in politics, law, and virtually any other category you can think of. As with any year, new laws were introduced in 2011 that may or may not have huge effects on a wide number of people. In large part, these laws go unnoticed. For instance, certain new bankruptcy laws for 2011 have made significant dents in the make-up of many codes across the country. While there wasn’t really a huge overhaul in 2011, certain states entertained and passed legislation regarding to bankruptcy law changes. It’s important for anyone to keep in the know when it comes to bankruptcy laws because you never know when they might apply to you.
For a little background, the federal government recognizes one overarching Code that applies to all bankruptcies. That is, of course, Title 11 of the United States Code. Within this Title, you’ll find several chapters that outline different forms of bankruptcy and virtually everything else you could imagine about bankruptcy. At one point, there were considerably more chapters in the code than there are now. Luckily, Congress decided to shave it down over the course of a few hundred years. Even so, Title 11 manages to be one of the largest and most studied codes in American law today.
On the federal level, there were a few minor changes that created new bankruptcy laws for 2011. In 2010, the Congress entertained a few amendments to the bankruptcy code. This included a few revisions to Chapter 15 but also one or two changes in Chapter 7. Of course, Chapter 7 is the most common form of bankruptcy filing and you’ll often hear the phrase “filing for Chapter 7” in relation to bankruptcy. The changes made in 2011 regarding Chapter 7 include shorter creditor filing times for debtors in involuntary bankruptcy cases, longer filing times for debtors who need to provide a statement of completion of their required course in financial management, and different time periods for debtors who have changed their status from Chapters 11-13 to Chapter 7. Overall, the changes dealt mostly with chronology, but it’s important to be abreast on these issues to understand exactly how much time you have.