Within the past couple of years, new bankruptcy laws have been enacted. These laws make some large changes to the old laws, and in some places, certain rules were totally revised and almost rewritten. The reason for this change was because individuals were taking advantage of the previoius laws in a huge way. For instance, people used to be able to file bankruptcy almost on impulse, and you could do so frequently, which meant that many people would file, then get themselves into financial trouble once again in very short order, then repeat the whole procedure. |
This type of misuse is no longer possible with the new bankruptcy laws. But the laws were enacted for a reason, and for the individual who has a legitimate requirement to file, these laws might appear cumbersome but they are in reality to your advantage. Possibly not in all cases, but learning to work within the laws can make the whole procedure a good deal better for you.
First of all, you need to know precisely where you are financially. Too many individuals suppose bankruptcy is their only way out of a difficult financial situation and have not taken the time or put forth the effort to thoroughly check out their options and alternatives. You can do this easily and inexpensively (in numerous cases, free) through a bankruptcy evaluation from a qualified lawyer who understands the procedure and the relevant laws in your state.
With the new bankruptcy laws, there exists a period of time during which if you have declared bankruptcy previously, you may not file again. This period of time varies from state to state but it is definitely not whenever you want. There are also certain types of debt that cannot be eradicated by bankruptcy, like tax liens, child support, and previously filed judgments against you from an irritable creditor.
Bankruptcy does not inevitably mean that all your financial obligations will be wiped out, although that is what most individuals hope will be the outcome. Instead, the courts examine in detail your financial state and then decide which chapter of bankruptcy you can file for. If the decision is Chapter 13, then your financial obligations are not wiped out but they are "reorganized" with reduced monthly payments, although you are still required to pay them. If you get approved for Chapter 7, then your financial obligations that are eligible are wiped out.
Again, this is not your determination. This is another reason that it is well worth your efforts and maybe even expense to be represented by a well-qualified bankruptcy attorney who understands these matters and recognizes how to show your finances to the court in a light that can give the decision you wish to receive.
Summary: obtain a bankruptcy evaluation and fully understand what your options are, and if bankruptcy is it, then you can also realize what to expect, which will allow you to make a smart decision as to whether or not you should go with it or not. For more insights and additional information about the new Bankruptcy Laws as well as seeing how you can get a free bankruptcy evaluation from a equalified bankruptcy lawyer in your local area, please visit our web site at http://www.bankruptcy-data.com/bankruptcy-law.php
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