Within the past couple of years, new bankruptcy laws have been enacted. These laws make some sweeping changes to the previous laws, and in some points, particular regulations were completely revamped and virtually rewritten. The reason for this change was because individuals were taking advantage of the old laws in a huge way. For instance, people used to be able to file bankruptcy virtually on impulse, and you could do so frequently, which meant that many people would file, then get into financial disorder once again in very short order, then duplicate the entire process.
This kind of abuse is not possible anymore with the new bankruptcy laws. But the laws were enacted for a reason, and for the individual who has a well-grounded requirement to file, these laws may look cumbersome but they are actually to your advantage. Possibly not in all situations, but learning to operate within the laws can make the entire process much better for you.
First off, you must determine exactly where you are financially. Too many individuals think bankruptcy is their only way out of a serious financial position 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 many situations, free) via a bankruptcy evaluation from a qualified attorney who understands the process and the laws in your state.
Via the new bankruptcy laws, there exists a time period during which if you have declared bankruptcy in the past, you cannot file again. This time period varies from state to state but it is definitely not whenever you want. There are as well particular kinds of debt that cannot be eliminated by bankruptcy, like tax liens, child support, and previously filed judgments against you from an irritable creditor.
Bankruptcy does not necessarily mean that all your debts will be wiped out, even though that is what most individuals hope will be the result. Rather, the courts take a detailed look at your financial state and then settle which chapter of bankruptcy you may file for. If the decision is Chapter 13, then your debts are not wiped out but they are instead "reorganized" with smaller monthly payments, although you are still obligated to pay them. If you get approved for Chapter 7, then your debts that are eligible are wiped out.
But note, this is not your decision. This is another reason that it is good use of your efforts and possibly even expense to be represented by a respected bankruptcy attorney who understands these issues and knows how to present your financial situation to the court in a manner that may give the conclusion you wish to get.
Bottom line: obtain a bankruptcy evaluation and completely understand what your options are, and if bankruptcy is it, then you can likewise realize what to expect, which will allow you to make a smart decision as to whether or not you should proceed 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
