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| The New Bankruptcy Law - What Has Changed |
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| Written by Chris Safin |
| Tuesday, 12 August 2008 21:56 |
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In recent years with the new bankruptcy law now in place, it has become far harder to apply for bankruptcy and also the prices of bankruptcy attorneys have gone up, since there is now more work for them to do. Key Changes In The All New Bankruptcy Law In order to make sure that only the most in need people qualify for bankruptcy, the government has created what they call the means test. Basically what will take place during the means test is that your monthly income, minus a few expenses, will be calculated and compared with the average American income, if you are above it you will be directly obligated to file for chapter 13. The IRS has set up some strict guidelines for your allowable expenses. You will be permitted up to 200 $ every month for your food and an additional 800 $ every month to cover the costs of your home. It is essential to understand that there are both state and federal bankruptcy laws. You will find that some state laws are more lenient than others. You will have to attend a mandatory credit-counseling course that has to be approved by the IRS within 180 days of your filing for bankruptcy. This is not a free course. Instead it will cost you approximately $75. Under the all new bankruptcy law there is now more paperwork that you will have to do so that you can prove that bankruptcy is necessary. Here's a few things you will need to provide the IRS: a list of all your expenses for each month and your monthly income sources, a list of all secured as well as unsecured creditors, assets and liabilities, the most recent tax return you have and of course your photo ID. There are now hefty legal fees that you will have to pay thanks to this all new bankruptcy law. This is because you will have to have a bankruptcy attorney ?certify? that your figures are accurate. The interpretation of the new bankruptcy law By law you are not obligated to use the services of a bankruptcy lawyer, however it is certainly highly recommended that you do in less of course you have qualifications in this area. If you are thinking that you won't employ a bankruptcy lawyer in order to save yourself money, it is more than likely that you will end up actually being worse off financially if you go down this route. About the Author: For more information about How To File Bankruptcy you can visit our site. This article The New Bankruptcy Law is also on our site. 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. |
| Last Updated on Friday, 15 August 2008 09:07 |
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