"New York New Bankruptcy Laws Reform 2005"

The Abuse Prevention Act passed, and became effective October 17, 2005. This act affects all New York bankruptcy cases. In particular, the most controversial provisions include restrictions on filing Chapter 7, increased Chapter 13 payments based on a new disposable income test, restrictions on judicial discretion to balance interests, and new mandatory fines and sanctions imposed against debtors.

Bankruptcy terminology tends to highly technical, complex, and somewhat confusing to general practioners. For consumer debtors filing for the first time, the terms and phrases can be daunting. The most accurate means of resolving questions of law necessarily relies upon the advice and counsel of local lawyers and law firms who are familiar with customs within the Division and District in which they practice. Attorneys who regularly practice before federal courts must be licensed not only by the New York State Bar, but also by the Federal Court for each Division. This additional license requires familiarity with local rules and the recommendation of other attorneys who previously received federal approval. Also be aware, federal employees are prohibited to provide parties in interest what may be deemed as legal advice.

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