Bankruptcy Law
Many people have been talking about the recent changes in the bankruptcy laws. But rather than focusing on all of the changes, it is more important to focus on the most important changes which may affect the possibility of whether or not you can file Chapter 7.
The difference between filing Chapter 7 and Chapter 13, is the fact that in Chapter 7 increments the you’re able to liquidate all of your debt allowing you to have a clean slate whereas with the Chapter 13 your debts will be restructured and you’ll still have to pay them off.
The most important aspect, or change to the bankruptcy law which will affect you is what is known as the means test. Basically this determines whether or not you are even eligible for Chapter 7, and is determined based on your income and your expenses.
In the event that you are still unable to file for Chapter 7 bankruptcy, then you have to take the time to look into the many aspects of the alternative. The way chapter 13 works, is that the court will restructure your debt payments that you’re able to pay them off in the next 3 to 5 years and at the same time allow you to keep your home as well as many other protected items.
You may also be asked to attend financial counseling by the courts at the same time. It is important to remember that because of all the legal issues associated with filing, that you make sure to find a professional lawyer who is experienced in this particular field to ensure that you’re able to make the proper decision based on your needs and your ability to repay your debts. Just make sure you make the right decision which is in the best interest for you and your family.