Has the Bankruptcy law changed that much?
Despite the negative consequences of filing for bankruptcy, many Americans are able to find a fresh start when they decide file. However, many people have been told by well meaning friends or advisers that bankruptcy is no longer available in most situations.
It's true that there have been some changes, but bankruptcy remains an option that you can and probably should discuss with a lawyer (and possibly a financial adviser if you can afford it). Bankruptcy is certainly not appropriate in every situation, but it can be a lifesaver for many individuals with overwhelming amounts of debt.
In 2005, Congress passed a law which reformed the bankruptcy code. The law is pretty complex, even for attorneys, and many have criticized it for making things tougher on consumers. Nevertheless, the credit industry was successful in convincing Congress to pass the law.
The law places additional requirements for those trying to declare bankruptcy, and these requirements include mandatory counseling and having to prove your income and your need for bankruptcy. Still, bankruptcy has not been eliminated as an option for most people. You may have to go through some additional requirements, however, such as the means test.
Actually, if your income is lower than the median salary in your state, the bankruptcy means test doesn't even apply to you. However, if your income is higher, you may have to go through this annoying but necessary procedure to show the court that you do need bankruptcy.
This really boils down to putting together a well documented list of all of your income and expenses. Be careful not to make any omissions, or this can come back to bite you later on.
It can seem like a painful process, but that's what your lawyer is there to help you with. Trying to declare bankruptcy without a lawyer would be pretty silly in my view. This new bankruptcy law in particular is quite complex, so you'll need the best bankruptcy lawyer that you can afford.
A good bankruptcy lawyer will have kept up to date on all the developments. This is important because the new bankruptcy law is quite complex, and there will be various court rulings on how to apply the bankruptcy code to various situations. Your lawyer must be well versed in all these things.
It's true that there have been some changes, but bankruptcy remains an option that you can and probably should discuss with a lawyer (and possibly a financial adviser if you can afford it). Bankruptcy is certainly not appropriate in every situation, but it can be a lifesaver for many individuals with overwhelming amounts of debt.
In 2005, Congress passed a law which reformed the bankruptcy code. The law is pretty complex, even for attorneys, and many have criticized it for making things tougher on consumers. Nevertheless, the credit industry was successful in convincing Congress to pass the law.
The law places additional requirements for those trying to declare bankruptcy, and these requirements include mandatory counseling and having to prove your income and your need for bankruptcy. Still, bankruptcy has not been eliminated as an option for most people. You may have to go through some additional requirements, however, such as the means test.
Actually, if your income is lower than the median salary in your state, the bankruptcy means test doesn't even apply to you. However, if your income is higher, you may have to go through this annoying but necessary procedure to show the court that you do need bankruptcy.
This really boils down to putting together a well documented list of all of your income and expenses. Be careful not to make any omissions, or this can come back to bite you later on.
It can seem like a painful process, but that's what your lawyer is there to help you with. Trying to declare bankruptcy without a lawyer would be pretty silly in my view. This new bankruptcy law in particular is quite complex, so you'll need the best bankruptcy lawyer that you can afford.
A good bankruptcy lawyer will have kept up to date on all the developments. This is important because the new bankruptcy law is quite complex, and there will be various court rulings on how to apply the bankruptcy code to various situations. Your lawyer must be well versed in all these things.
About the Author:
Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about the different types of bankruptcy visit us at http://personalbankruptcyquestions.org
posted by Debt Consolidation Loan at
3:11 AM
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