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How Springfield Bankruptcy Attorneys Can Help You

The new bankruptcy law, officially known as The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, is aimed at making it more difficult for debtors to file for bankruptcy under chapter 7. Prior to the new law, potential filers could walk away from their debts after giving up most of their assets, which in most cases are not substantial. The new bankruptcy law makes it tougher to walk away debt-free that’s why you need our Springfield bankruptcy attorney in your arsenal.

One of the most important provisions of the law requires debtors to pass the Means Test. In summary, the test determines whether a bankruptcy filer has enough disposable income to repay their debts. A person whose income exceeds that of their state of residence’s median income will probably not qualify to file under chapter 7 but rather under chapter 13. Chapter 13 sets up a repayment schedule for debtors to repay their debts; thus debts are not forgiven but rather the filer has more time to pay them back.

Another substantial change is that consumer credit counseling education is mandatory prior to filing for bankruptcy. The counseling education must be acquired through a government-approved non-profit credit counseling agency.

A Springfield bankruptcy attorney may not advise a filer on any matters that lead to the accrual of additional debts prior to filing for bankruptcy. It’s a sound advice since the act of filing for bankruptcy itself will naturally lead a filer to incur more debt. Lastly, shopping for a Springfield bankruptcy attorney may be more difficult. The new law holds a filer’s bankruptcy attorney responsible for ensuring that the filing is legitimate. In fact, the bankruptcy attorney has to sign the petition and verify that it is grounded in facts.

 

Read about St. Petersburg Bankruptcy Attorneys.

 

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