Transcript:

Intro Speaker: It’s time for Kelly Can Help hosted by Jeff Kelly, Attorney at Law with the Law Office of Jeffrey B Kelly. And now here’s Jeff Kelly.

Jeff Kelly: Hello, this is Jeff Kelly. And here we are on January 6 2021, is the date of this recording. And today, what I would like to talk about is the current state of bankruptcy, some changes that may be coming down the pipe. So as a consequence of the elections, it does look like the democrats are going to have control over the Senate, and there is some Bankruptcy Reform that is most likely going to come down the pipe and looks like it may pass. And I don’t have all of the details yet. But one of the biggest things that is coming is that student loans are going to be dischargeable in bankruptcy, that’s going to be huge. And that’s that’s going to create a flood of cases.

Jeff Kelly: So what does this mean for people who are in debt right now? Well, one of the biggest mistakes that I see people make about filing is they just put it off too long. And it can create a lot of problems waiting too long. It and there’s no sense in doing that. It’s a free consultation to call us.

Jeff Kelly: Let me give you an example of people who wait too long they get in to fix they have some debt hanging over their head. And and they they could qualify right now today, they could wipe the debt out and get a fresh start and move on with life. But a lot of people will wait. And some things happen. People get new job, they start making good money, and then they want to file. Well, we might not be able to wipe out as much debt if you have gotten, you know, a new job a new income. And I’m seeing that a lot where people’s income has passed, picked up in the past couple months, a lot of people working overtime and so forth, that can affect us on the Means Test.

Jeff Kelly: Will there still be a means test? Once the new bankruptcy form reform laws go into place? I don’t know. When Will those laws go into place? I don’t know. So you know, the bottom line is if you need to file now is a good time. If you have a bunch of student loans hanging over your head, it potentially might be better to wait, we’ll see. I don’t know how the new law is going to impact old cases are we gonna to be able to discharge student loans in cases that were filed before the law changed? I, again, I don’t know there’s a lot of things are up in the air. But if you are in a situation where you’ve got debt hanging over your head, you need to take action. Because in Georgia, if you mess around and wait, and your creditor gets a judgment against you, they can take 25% of your net check. They can also clean out your checking account. They can also put liens on your house.

Jeff Kelly: Is it ever too late to file bankruptcy? No, it’s not. It’s not too late. But you definitely don’t want to do things like empty out your 401k and I and I get it.