Changes to Bankruptcy Law
Federal bankruptcy laws were modified in 2005, making it harder for certain people to file for bankruptcy. Changes include stiffer requirements in filing certain types of bankruptcy and stricter guidelines for attorneys, documentation and how assets and expenses are valued.
Several Major Points Affected by the New Law Include:
- A required consumer credit counseling class to be completed prior to filing
- A required personal financial management class to be completed prior to your bankruptcy becoming final.
- Limitations on income to qualify for a Chapter 7 filing.
- Requirement to take a “means test” to determine qualification for Chapter 7.
- An attorney must personally vouch for the accuracy of the financial paperwork submitted by the individual filing for bankruptcy.
- Limiting Chapter 13 expenses allowed in calculating a budget to those set by the IRS, rather than actual expenses
- The valuation of property at replacement cost when determining assets available to dispose of.
These changes all point to the same solution – it’s vital to enlist a knowledgeable attorney who is up to date on the latest laws and regulations. At Engel Law Firm, we work to stay current on all of the latest developments in this area of the law. We can guide you and ensure that what you’re doing is within the requirements of the law.
Contact Engel Law Firm today and speak to an attorney who can guide you through this process, and help you recover from overwhelming debt.