Due to the high incidence of bankruptcy fraud and abuse, new bankruptcy laws have been enacted.
It is important that if you are planning on filing bankruptcy you seek the advice and counsel of a bankruptcy lawyer. This way you can ensure that you are staying within the confines of the law.
Bankruptcy serves as a last resort for those who risk losing everything.
Because there is so much at stake during a bankruptcy case, only an experienced lawyer should handle your case. You should also make certain that the lawyer you choose is familiar and experienced with the new bankruptcy laws and has a clear understanding of how bankruptcy can best meet your financial needs.
The new bankruptcy law determines what Chapter you will be filing.
To determine if you are eligible to file for Chapter 7 or Chapter 13 Bankruptcy, the new law includes what is referred to as the Means Test.
The Means Test determines who will be eligible for filing under Chapter 7 or Chapter 13.
This new law helps to prevent people from filing for Chapter 7 bankruptcy and having all of their debts discharged when they can afford to make payment arrangements to their creditors.
Additionally, the new bankruptcy laws make certain that everyone who files for bankruptcy must take precredit counseling beforehand. The counseling ensures that individuals will have full training on how to run a budget and manage their finances to prevent future bankruptcies.