Rama Law News

Attorney Rama Now Professor Rama

Attorney Rama has been accepted as an Adjunct Professor at Endicott College in Beverly, Massachusetts commencing in the Fall of 2008. Attorney Rama will be teaching, at the undergraduate level, various courses surrounding International Commerce and Marketing. Attorney Rama earned her post graduate law degree, Masters of Law, specializing in International Law and Finance. Attorney Rama is excited to dedicate her time to the scholastic community and to engage new students to undersand and learn about the International Marketplace.

2008 Bankruptcy Law Changes F.A.Q.'s

I need a bankruptcy, but I heard about a new law. Is there a new law?

Yes, there is a new bankruptcy law.

When does the new law start?

The new law will apply to people who file for bankruptcy on or after October 17,2008. It will not apply to people who file for bankruptcy before October 17, 2008.

What happens if I wait until after October 17, 2008 to file for bankruptcy?

You must follow the new bankruptcy law. The new law changes your rights a lot.

What should I know about the new law?

There are many changes. The biggest change for poor people is that it will make filing for Chapter 7 bankruptcy harder for many people. It will force more people to file for Chapter 13 bankruptcy instead. This means people will have to pay back more money that they owe.

What are Chapter 7 and Chapter 13 bankruptcy?

With a Chapter 7 bankruptcy, most of your debts are completely discharged. This means that you no longer have to pay them. With a Chapter 13 bankruptcy, you have to set up a payment plan to pay part or all of your debts over a certain period of time.

How can I tell if the law will affect me?

Under the new law, most people who make over the average income in the state will no longer be able to file Chapter 7 bankruptcy.

My yearly income is less than the Massachusetts median income. What about me?

You will still be able to file a Chapter 7 bankruptcy.

Is that all?

No. There are other changes to the bankruptcy law.

• If you file a Chapter 7 bankruptcy, you must wait eight years before you can file a Chapter 7 bankruptcy again.
• You must get credit counseling before you file for bankruptcy. You must get this counseling less than 180 days before you file for bankruptcy. The credit counselor must be approved by the Court.
• You must take a money management class after you file for bankruptcy. The Court won't get rid of your debts until you take this class.
• You can give up to 15% of your income to charity. (This may allow you to qualify for Chapter 7 instead of Chapter 13.)
• You must pay the child support and maintenance (alimony) that you owe first. Child support and maintenance must be paid before taxes and any other unsecured consumer debt.
• You must pay any property settlement debts.
• You must give the Court a copy of your most recent tax returns. This must be done at least 7 days before the meeting of the creditors.
• You may not be able to get rid of some debts for luxuries and cash advances. Luxuries are goods that are not necessary for supporting you or your family. Luxuries are included if they cost more than $500 and are bought less than 90 days before you file for bankruptcy. Cash advances are included if they are for more than $750 and happen less than 70 days before you file for bankruptcy.
• Usually you have to pay a filing fee when you file for bankruptcy. The filing fee in 2008 for Chapter 7 is $299. Under the new law, you can ask the Court to "waive" the filing fee. This means that you may not have to pay te filing fee. The Court will only waive the filing fee if:
  • you cannot make the monthly payments and
  • if you and your family make less than 150% of the Federal Poverty Level
• You must live in Massachusetts for two years before you can use Massachusetts exemptions. Exemptions are property that you can keep when you file for bankruptcy. Property that is not exempt has to be sold to help pay the money you owe.
• If you bought your vehicle within 2 years of filing for bankruptcy and want to keep it, you must pay back all the money you owe on it.
• Your landlord can still evict you if:
  • he or she gets a judgement of possession before you file for bankruptcy.
  • you put the property at risk in the 30 days before you filed for bankruptcy, or,
  • you used illegal drugs or alcohol on the property in the 30 days before you filed for bankruptcy.
• You may still need to pay all of your student loans. This includes student loans from private lenders.

Call for a free consultation to see exactly how the new laws will affect your eligibility to file relief under the Bankruptcy Code.