How Do The New Bankruptcy Laws Effect You
Under the new bankruptcy laws that were approved in 2005, you may find it more difficult to find a bankruptcy lawyer. This is due to the fact that the new bankruptcy laws make it more complicated to file bankruptcy. Many lawyers have chosen to no longer offer this service.
For those lawyers who do offer the service, it is now more expensive for their clients because it takes more of their time. This means that you will pay more for bankruptcy under the redesigned bankruptcy laws. For example, bankruptcy lawyers now have to personally attest to the accuracy of the information provided by their clients in the bankruptcy courts. This means that they have to take the time to personally research all of the information provided by their clients. The more time a lawyer spends with a client's case, the more that case will cost.
While most of the changes under the new bankruptcy laws are aimed at those looking to discharge their debts under Chapter 7 Bankruptcy, there are some changes to the process of filing Chapter 13 Bankruptcy as well. Under Chapter 13, the person declaring bankruptcy will still work to pay back the debts. The creditors will work out monthly payments based on how much the individual has after accounting for living expenses. However, under the new bankruptcy laws, the IRS decides how much the living expenses should be. The individual filing bankruptcy has no control over the living expenses. This means that many people have to live on far less than they are used to having, causing many changes in their standards of living.
Why are the new bankruptcy laws necessary? In today's unstable economy, many people were spending more than they had and then turning to bankruptcy when they could not pay what they owed. The government wanted to make it harder for people to file for bankruptcy when they did not really need to do so. However, those that truly need to file for bankruptcy can still do so under the new bankruptcy laws.
For those lawyers who do offer the service, it is now more expensive for their clients because it takes more of their time. This means that you will pay more for bankruptcy under the redesigned bankruptcy laws. For example, bankruptcy lawyers now have to personally attest to the accuracy of the information provided by their clients in the bankruptcy courts. This means that they have to take the time to personally research all of the information provided by their clients. The more time a lawyer spends with a client's case, the more that case will cost.
While most of the changes under the new bankruptcy laws are aimed at those looking to discharge their debts under Chapter 7 Bankruptcy, there are some changes to the process of filing Chapter 13 Bankruptcy as well. Under Chapter 13, the person declaring bankruptcy will still work to pay back the debts. The creditors will work out monthly payments based on how much the individual has after accounting for living expenses. However, under the new bankruptcy laws, the IRS decides how much the living expenses should be. The individual filing bankruptcy has no control over the living expenses. This means that many people have to live on far less than they are used to having, causing many changes in their standards of living.
Why are the new bankruptcy laws necessary? In today's unstable economy, many people were spending more than they had and then turning to bankruptcy when they could not pay what they owed. The government wanted to make it harder for people to file for bankruptcy when they did not really need to do so. However, those that truly need to file for bankruptcy can still do so under the new bankruptcy laws.
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