Jim Schelli has represented clients in all aspects of
debt counseling. He has worked
with clients to restructure their debts and has negotiated with creditors to
reduce clients’ liabilities. When
the situation warrants, Mr. Schelli has represented clients in Chapter 7,
Chapter 11 or Chapter 13 Bankruptcies.
Currently, there is a major
revision of the Bankruptcy laws being considered by both the Senate and House
of Representatives. As of the
date of this writing, both the Senate and the House has approved similar, but
not identical, bills. Currently
representatives of each legislative body are working out the details of a
reconciliation of the two Bills. President
Bush has indicated his intentions of signing the Bill once presented.
The Bill, as currently
drafted, will change many aspects the Bankruptcy Laws.
Perhaps the most significant change is an income test designed to force
most debtors to file under Chapter 13 of the Bankruptcy Code instead of the
more favorable Chapter 7. Other
requirements such as requiring debtors to undergo credit counseling and
imposing greater restrictions on the debtors conduct both before and after
filing are designed to reduce the number of bankruptcy filings.
It should come as no surprise that credit card issuers and lenders have
been strong supporters of this Bill.
Fortunately, the Bill currently provides a 180 days delay in the effective date. Individuals seeking protection under the Bankruptcy Code should still have time to file under the current law if they act quickly. If you would like to discuss how your own personal situation would be affected under the current or proposed law, please contact our offices for an appointment. Additional information on the status of the new legislation can be found at www.abiworld.org