"Texas New Bankruptcy Laws"

The Federal Bankruptcy Abuse Prevention Act became effective October 17, 2005. This Act greatly impacted all cases in Texas. New bankruptcy laws were primarily drafted by lobbyists representing wealthy lenders, and as such, are primarily intended to prevent most US citizens from filing, while expanding the rights of large and wealthy corporations. In particular, the new Act creates expanded restrictions on who may file Chapter 7, increases Chapter 13 payments, limits judicial authority, and requires increased mandatory fines and penalties in many new circumstances.

In Texas, legal definitions are derived from many sources, both federal and state: case law, statutes, rules of procedure, rules of evidence, and local practices. The application of law determines meaning, rather than common usage in ordinary conversations. For instance, a particular phrase used in a significant court decision may become popular, and is understood to include the rationale and requirements contained in the published opinion. For this reason, any debtor who may have questions about legal terminology should contact a qualified attorney for clarification. Most consumer specialists offer free consultations for anyone who is considering filing Chapter 7 or Chapter 13.

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