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| Has the Bankruptcy law changed that much? |
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| Written by Josh Ramos |
| Sunday, 22 February 2009 10:52 |
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Many people are currently under the impression that bankruptcy is no longer an option for them because of recent changes to the bankruptcy law. They have been told through word of mouth about the bankruptcy reform law, and they assume that this option for a new financial start is no longer available. While there have been changes made in recent years, bankruptcy is still a viable option that you should consider with your attorney. While it isn't for everyone, bankruptcy might be the best option for you depending on your circumstances. The reason that many people are confused about the current state of the bankruptcy code is that Congress passed a new law in the year 2005. This new law is extraordinarily complicated, and even lawyers may have difficulty sorting through all the details and restrictions. The bottom line is that declaring bankruptcy will require you to take some additional steps including mandatory financial counseling. The most important revision in the bankruptcy code requires that you pass something known as the means test. The point of this test is that you have to prove that you do need bankruptcy. The means test is designed to prove to the bankruptcy court that you really do need bankruptcy. If your income is lower than average (based on your state), then the process is much easier and you don't have to prove anything through a means test. If you have a higher income, however, you will have to take some additional steps. If you do have to go through the means test, that means that you'll have to go to greater lengths to document your income (as well as your expenses). You must be very careful in putting together these documents, because any errors can create a world of hassle for you down the road. 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. That is, you need someone who has kept up to date on these latest developments, especially when you consider that there are court rulings coming out over time that will shed new light on this law. You should also learn as much as possible before discussing your case with a lawyer. You can learn quite a bit about whether bankruptcy is right for you and how best to proceed before ever walking into a lawyer's office. 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 bankruptcy filing visit us at http://personalbankruptcyquestions.org Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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