The new bankruptcy law enacted in 2005, has imposed stringent procedures in the process of file bankruptcy online. While the process has been further complicated, the law emphasizes on the need for probable bankruptcy filers to undergo credit counseling prior to help with bankruptcy to formulate financial budgeting and debt management. This has only served to underline the criticality of using services of a personal bankruptcy lawyer.
Bankruptcy filers could face could now find it difficult to file for a chapter 7 or chapter 13 bankruptcy procedures. This is on account of the changes in the previous bankruptcy law proposed by the help with bankruptcy law enacted in 2005. The new law prohibits borrowers with higher incomes from using chapter 7 bankruptcy, but requires individuals to repay at least some part of their debts under chapter 13 bankruptcy law. Furthermore, debtors are required to compulsorily undergo credit counseling prior to filing for a bankruptcy under chapter 7 or chapter 13 and an additional counseling on budgeting and debt management before their debts could be wiped out. The law thus aims to curtail the eligibility of chapter 7 bankruptcy information here is an overview of some of the important changes in the 2005 bankruptcy law.
With the new law in place, in order to file for a bankruptcy under chapter 7, your existing monthly income should be less than or equal to the median household income in your state for a family of your size. Under the tenets of the new bankruptcy law, if the monthly income exceeds the average income, debtors are required to pass “the means test” to be eligible for a chapter 7 bankruptcy filing process. The main objective of the test is to determine whether debtors have any surplus income left after subtracting certain allowed expenses permitted by the IRS-not actual expenditures- and required debt payments, to make payments on a chapter 13 bankruptcy. If the income that is left over after the calculations is below a legally pre-determined amount, only then could bankruptcy filers file for liquidation under chapter 7 bankruptcy.
Thus, the 2005 bankruptcy law lays down new conditions of qualification for a chapter 7 or chapter 13 bankruptcy filing for debtors. Considering the aforesaid subtleties, it is always desirable to utilize online professional expertise since, these services offer bankruptcy approved counseling sessions which is mandatory under the new law as well as employ a personal bankruptcy lawyer to help bankruptcy applicants in the process of filing for a bankruptcy under chapter 7 or chapter 13. However, it is recommended to use reputed online service providers such as www.LoansStore.com/Bankruptcy so that it could enable you to know and understand certain critical aspects proposed by the new law.
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