Submit a bankruptcy? Understand the law of new bankruptcy before you continue
Since Congress passes new bankruptcy laws in 2005, there is a lot of confusion among consumers who might reflect on bankruptcy filing to get help from their debts. Many of them are not sure about their feasibility under new laws, changes in law and how it will likely affect them. The factors that motivate behind the new law are the extension of assistance to consumers who are truly driven serious debt about payment and prevention of system abuse.
The new law allows you to decide whether you really have the need to submit bankruptcy of article 7. But there are many lawyers who do not agree with this, and there are many consumers who are not happy with new laws too.
The new bankruptcy law requires you to attend and complete credit counseling courses within six months before you actually submit bankruptcy.
You don’t have to be physically present in class; You can do this by telephone or through online classes. You need to attach a certificate that shows the settlement of the course along with your petition for bankruptcy before being submitted in court. In some cases, if you cannot take a course before applying for you, the court can give you an extension.
Under the new bankruptcy law, you need to give a tax return if the creditor wants it, in addition to having a payment discount for two months before you submit bankruptcy of Article 7. The requirement does not end there, the new law tries to educate you to manage your finances with It is better so that you do not end up appeal in the court of bankruptcy in the near future, and for that, you must take classes in financial management after the bankruptcy petition article 7 you succeed.
If you are still hesitant about your feasibility to file bankruptcy under Chapter 7 in accordance with the law of new bankruptcy, take a heart. It is estimated that by one lawyer that 97% of people who qualify under the old law will continue to be eligible under the new one. Other 3% may have to meet additional requirements before they qualify.
The new bankruptcy law also prescribes complex tests to assess your feasibility for the bankruptcy of Article 7, especially if your salary exceeds the average income in your country. If you do not delete this test, Chapter 13 is one of the options you can consider because it has a payment plan.