What changes have I seen since the new Bankruptcy laws have gone into effect?

Most debtors I talk with fear they have lost the right to debt relief through bankruptcy and in most cases they may be right. Based on some of the new rules most debtors will be forced into chapter 11 instead of a chapter 7, which would lead to a complete discharge of debt . Chapter 11 is a payment plan.

As the program has been described to me the court would establish your monthly budget based on a formula, not your actual expenses. Your payment into the creditor fund would be based on the your income less the allowed expenses. The results could be a disaster. For example if your house payment is several hundred dollars more than was budgeted by the court, Tough Luck!
This could easily happen even if you have a modestly priced home, especially if your interest rate is more than the current low rate.

We have also discovered that some credit card companies are determined to eliminate your Right of Representation. These companies are refusing to talk or deal with us even though we are considered by law to be the legal representative of the debtor with a properly executed Power of Attorney.

OUR ADVICE:
Do not use credit cards for business debt. More importantly do not believe you are getting a business credit card if you are required to use your social security number or sign as a guarantor using your social security number. This type of card permits the creditor to come after both you and your business assets if you default. A business credit card is issued, using the business federal tax ID number not your SSN. Any other way it is a personal card with your business as a responsible party.

- TheDebtDr
http://www.financialtechnologies.com